Conglomerate Ayala Corp. plans to issue up to P30 billion in debt securities under a shelf registration program.
The company said in a disclosure to the stock exchange its board approved the filing of a three-year shelf registration with the Securities and Exchange Commission worth up to P30 billion.
The amount of debt securities may be issued in one or more tranches as may be determined by the company within a period in accordance with the SEC rules.
Ayala will sell the debt securities to the general public. This will be the second shelf registration program filed by the conglomerate.
Ayala in January completed the issuance of P10 billion worth of fixed rate bonds due 2025, the second and last tranche of its P20 billion three-year fixed rate bond program approved by the Securities and Exchange Commission.
Ayala plans to use the proceeds of the bonds to refinance the group’s outstanding bond issuance of P10 billion that matured in April.
Ayala, which has core investments in real estate, banking and telecommunications and water utility, has been expanding into infrastructure, power generation, manufacturing and logistics.
To finance its expansion plans, the group earlier allotted P185 billion in capital expenditures this year, up 13 percent from a year ago.
A large portion of the amount would be spent by from Ayala Land Inc., which has set aside ₱88 billion mainly to bankroll the completion of several real estate projects. Globe Telecom Inc. earmarked ₱37.5 billion to drive its data network infrastructure upgrades.
At the parent level, Ayala will deploy ₱21 billion in capital spending, mainly to support the expansion plans of power unit AC Energy Holdings Inc.
Manila Water Company Inc. budgeted ₱20 billion to support its initiatives in the Manila concession, as well as expansion plans outside Metro Manila.
The parent company will deploy the rest of the capital expenditures across AC Industrials, Bank of the Philippine Islands, AC Health and AC Education.
A number of companies have filed for shelf registration of debt securities, a program that enables issuers to conduct fund raising activities as needed or when market conditions are favorable to them.