Conglomerate Ayala Corp. said its proposed issuance of P10 billion fixed retail bonds received a rating of PRS Aaa with a stable outlook from Philippine Rating Services Corp.
Ayala said in a disclosure to the stock exchange the P10 billion due 2025 was the second and last issuance in relation to its three-year fixed rate P20-billion bond program approved by the Securities and Exchange Commission.
Ayala plans to use the proceeds from the bond issue to refinance the group’s outstanding PRS-rated bond issuance of P10 billion maturing on April 30, 2017.
The conglomerate hired BPI Capital Corp., China Bank Capital Corp and PNB Capital and Investments Corp. as joint issue managers, and BDO Capital & Investments Corp., BPI Capital, China Bank, East West Banking Corp., First Metro Investments Corp. and PNB Capital as joint lead underwriters.
The bonds will be listed with the Philippine Dealing & Exchange Corp., the operator of the country’s fixed-income exchange.
PRS Aaa is the highest credit rating assigned by PhilRatings. Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is also extremely strong.
A stable outlook, meanwhile, is an indication of the possible direction of any rating change within a one-year period, and serves as a further refinement to the assigned credit rating for the guidance of investors, regulators and the general public.
PhilRatings considered Ayala’s strong brand equity and leading market position for its core businesses, well-defined strategy, sustained profitability, and healthy cash flows and financial flexibility.
Ayala is one of the largest and most diversified conglomerates in the Philippines with core investments in property, banking, telecommunications and water utility.
It also has interests in industrial technologies, power generation, transport infrastructure, international real estate, healthcare and education.
The conglomerate booked a net profit of P32.48 billion in the first nine months of 2016, up 11 percent from the P29.21 billion year-on-year.