Ayala to issue dollar notes


    Ayala Corp. is looking to issue a still unspecified amount of dollar-denominated notes through unit AYC Finance Ltd.

    AYC Finance tapped The Hong Kong Shanghai Banking Corp. Ltd. (HSBC) as sole global coordinator as well as BPI Capital Corp., Credit Suisse (Hong Kong) Ltd., HSBC, J.P. Morgan Securities Plc. and UBS AG Singapore Branch as joint lead managers and joint bookrunners.

    The fixed-for-life (non-deferrable) senior perpetual notes will be covered by Regulation S offering rules of the United States, the issuance of which will be subject to market conditions, AYC Finance said.

    The perpetual notes follow a P15-billion re-issuance by Ayala of Preferred B shares after it is redeemed by November.

    The company said its board of directors has approved the return to the market of the preferred shares once it is redeemed by Nov. 5, 2019, the fifth year after it was issued.

    “The redemption will be effective November 5, 2019 (the 5th year anniversary from the issue date of the shares) by payment in cash of the redemption price equal to the issue price of the shares plus accrued and unpaid dividends up until November 5, 2019 based on the dividend rate of 5.575 percent per annum,” the company said.

    In November 2014, the company issued the shares to refinance debt.

    Ayala reported its profit for the first half of the year surged 135.46 percent to P37.83 billion from last year’s P16.07 billion.

    Consolidated revenues rose 7.84 percent to P160.38 billion from P148.71 billion a year ago.

    The company attributed its performance to the “solid growth of its banking, telecommunications, and real estate units combined with gains from value realization exercises in its emerging businesses.”