Ayala Life to issue P3-B worth of new shares

Ayala Life Fixed Income Fund Inc., the mutual fund unit of the Ayala Group, has applied for registration and licensing of P3-billion worth of new shares, representing the latest increase in its authorized capital from P9 billion to P12 billion.

According to documents filed with the Securities and Exchange Commission (SEC), the shares, consisting of 30 million new common shares, will be sold to the public at a minimum subscription of P100,000.

Of the new capitalization, P1.09 billion has been subscribed and P750.81- million paid up. The new capitalization is divided into 120 million common shares with a par value of P100 per share.

The company plans to use proceeds from the offering to build up its investment in fixed-income instruments, including Treasury bills, Bangko Sentral ng Pilipinas certificate of indebtedness, other government securities or bonds or other evidences of obligations guaranteed by the Philippine government issued locally and abroad.

The company was earlier authorized by the SEC to sell P2-billion worth of additional common shares to the public.

Ayala Life is managed by Bank of the Philippine Island’s asset and trust management group, which manages more than P100 billion in assets.

The company’s strategy is to invest in short- to medium-term government securities and build up its holdings of Philippine sovereign debt paper.

Among the firm’s major shareholders are Manuel Bengson, Francisco Luna, Isagani de Castro, Ramon Madrid, and Adelbert Legasto.

Ayala Life reported a net income of P455.43 million for the first nine months of the year. Revenues, on the other hand, amounted to P719.46 million while expenses reached P267.54 million. – Zinnia dela Peña