Ayala raises P10 B from oversubscribed bonds

MANILA, Philippines - Ayala Corp., the country’s oldest conglomerate, has raised P10 billion from the issuance of eight-year fixed rate bonds that were oversubscribed by retail investors.

Ayala listed the bonds yesterday, at the Philippine Dealing System (PDS), the country’s fixed income exchange, marking the first corporate bond listing this year.

“This underscores our continuing confidence in the Philippine economy and business as usual in many ways for the Ayala Group,” Ayala chairman and chief executive officer Jaime Augusto Zobel de Ayala said.

“As far as the issuance is concerned, we are delighted to see that investor interest remains high,” he added.

Ayala chief finance officer Teodoro Limcauco said the issuance was 180 percent oversubscribed.

“More importantly, 90 percent of the issuance has a significant support from retail investors which I think is good for the market. To me it’s a good sign of the maturity of our capital market. That the retail market now sees bonds as a viable investment alternative to deposits, to mutual funds,” Limcauco said.

The bonds have an interest rate of 4.82 percent and will mature on Feb. 10, 2025.

Limcauco said proceeds would be used for refinancing purposes.

The P10-billion bonds is the second tranche of Ayala’s P20-billion bond program under shelf registration.

The first tranche of P10 billion was issued in July last year, which received about 55 percent interest from retail investors, according to Limcauco.