Ayala raising P10 B in fixed-rate bonds

MANILA, Philippines - Ayala Corp. said yesterday it is planning to issue up to P10 billion worth of seven-year fixed rate bonds.

The bonds, priced at par or 100 percent of face value, will be sold via a public offering, Ayala said in a disclosure to the Philippine Stock Exchange yesterday.

The planned fund-raising scheme is part of the group’s efforts to bolster its cash reserves as it embarks on a $1-billion, five-year capital expansion program aimed at building up its presence in the power generation and infrastructure sectors.

In July, Ayala raised P6.45 billion in cash through the sale of 15 million treasury stocks.

Ayala is in a phase of active investment in the power and infrastructure sectors, which it deems are critical for the country’s growth and development.

On top of the Daang Hari–SLEX (South Luzon Expressway) connector road — the first Public- Private Partnership (PPP) project bagged last year — Ayala is looking to bid for other toll road, rail, and airport projects. Among the projects of interest are the NAIA expressway, the Cavite-Laguna (CALA) expressway, and the LRT Line 1 extension.

Ayala also formed a strategic partnership with Metro Pacific Investment Corp. (MPIC) to jointly pursue light rail projects in Metro Manila.

Ayala recently teamed up with Aboitiz Equity Ventures Inc. to bid for the rehabilitation of the Mactan Cebu International Airport, which is estimated to cost around P10 billion.

In the power generation business, Ayala aims to build a portfolio of 1,000 megawatts (MW) of power capacity over five years. It earmarked around $100 million on approximately 180 MW of capacity across thermal, wind, hydro and solar technologies.

The group began construction of a 135-MW coal-fired thermal plant in Calaca, Batangas in partnership with the Phinma Group’s Trans Asia Oil and Development Corp. It is also currently working on a possible second phase of expansion of the plant.

Ayala also continues to actively pursue a robust pipeline of greenfield projects and acquisition opportunities in the power sector.