Ayala inks $200 million yen-denominated loan

MANILA, Philippines — Ayala Corp. has inked its first yen-denominated term loan as part of the company’s continuing diversification of its funding sources.

Ayala said it signed a yen-denominated term loan equivalent to $200 million or about P11.5 billion following a positive credit rating appraisal from the Japan Credit Rating Agency Ltd. (JCR).

Mizuho Bank Ltd. and Sumitomo Mitsui Banking Corp. (SMBC) served as the mandated lead arrangers and bookrunners.

Ayala said it would use the loan proceeds for general corporate purposes.

“The development comes as the company continues to diversify funding sources at competitive rates to support business growth,” it said.

Ayala said it received competitive rates for the loan after earning an inaugural foreign currency long-term issuer rating of A- from JCR, enhancing its access to the Japanese market for capital needs.

The rating indicates a relatively high level of creditworthiness and suggests that the company can meet its financial commitments.

“This maiden yen-denominated loan broadens Ayala Corp.’s partnership with Japanese financial institutions, particularly Mizuho and SMBC. The samurai loan enhances Ayala Group’s capital raising options and helps us better grow businesses that enable people to thrive,” Ayala treasurer Estelito Biacora said.

As one of the country’s largest conglomerates, AC has presence in real estate, banking, telecommunications and renewable energy.

It also has a growing presence in health care, mobility and logistics, as well as investments in industrial technologies, education and other ventures.