Conglomerate Ayala Corp. raised $400 million from the issuance of US dollar-denominated fixed-for-life (non-deferrable) senior perpetual notes amid strong demand from high-quality investors.
Ayala said in a disclosure to the stock exchange Friday the notes would have a fixed coupon of 3.9 percent for life, with no step-up and no reset, payable semi-annually.
It priced the notes at par with a re-offer yield of 3.9 percent, which represents a 40-basis-point compression from the initial guidance of 4.3 percent.
The offering was oversubscribed by 4.4 times, as the final order book reached $1.75 billion.
“As we reposition our portfolio to adapt to the rapidly changing environment, the success of this issuance strengthens further our financial position that enables us to scale investments in critical sectors and do our part in helping reinvigorate the Philippine economy,” said Ayala president and chief executive Fernando Zobel de Ayala.
Ayala chief finance officer Alberto de Larrazabal said the fund raising and liability management exercise would further strengthen the group’s balance sheet and provide additional flexibility as it repositions for post-pandemic economic recovery.
“We are grateful for the steadfast support from our credit investor base despite the current uncertainties in the market brought about by the pandemic,” de Larrazabal said.
The net proceeds from the notes will be used to refinance the company’s outstanding US dollar-denominated notes.
The company is conducting a tender offer to buy back a portion of its $400-million, 5.125 percent senior fixed-for-life notes and $400-million, 4.85 percent senior fixed-for-life notes.
Ayala tapped BPI Capital Corp., Citigroup Global Markets Singapore Pte. Ltd., Credit Suisse (Singapore) Limited, J.P. Morgan (S.E.A.) Limited, Mizuho Securities (Singapore) Pte. Ltd. and UBS AG Singapore Branch as the joint lead managers and joint bookrunners for the transaction.
The share price of rose 0.31 percent Friday to close at P811.50.