LISTED conglomerate Ayala Corp. (AC) is exercising its call option to redeem P10 billion bonds due in 2019 as a part of the group’s plan to manage its debt obligations.
In a disclosure to the stock exchange on Monday, AC said its board of directors approved on September 20 the early redemption of P10 billion in bonds due 2019 by exercising the issue’s call option.
The bonds that are being redeemed early were issued in 2012 and carry a rate of 5.45 percent per annum.
AC said the bonds will be redeemed through a cash payment of 100.5 percent of the principal amount or a payment price of P10.05 billion. Including accrued interests and other unpaid interests based on the existing coupon rate, AC will pay out a total of P10.186 billion.
The redemption is expected to be done on November 23.
AC said the listing of the bonds at the Philippine Dealing & Exchange Corp. “shall be terminated” on the call option date on November 23.
In June this year, the Securities and Exchange Commission (SEC) approved the Ayala group’s shelf registration of fixed-rate bonds worth P20 billion to be used mainly to refinance its obligations. The company issued the first tranche of P10 billion bonds due2023 with a 3.92 percent fixed rate in July.
Founded in 1834 and incorporated in 1968, AC is the holding company of the Ayala family’s businesses, which include water (Manila Water), telecoms (Globe Telecom Inc.), property (Ayala Land Inc.), semiconductors (Integrated Micro-Electronics Inc.), banking (Bank of the Philippine Islands), power (AC Energy Holdings Inc.), infrastructure (AC Infrastructure Holdings Corp.) and BPO and education (LiveIt Investments Ltd.), among others.