DIVERSIFIED Ayala Corp. has finalized the tenors for the issuance of its $400-million senior perpetual notes, the proceeds of which will be used to finance obligations and investments.
In a disclosure on Thursday, the listed conglomerate said that the senior unsecured and guaranteed fixed-for-life perpetual notes carry a re-offer yield and coupon rate of 4.85 percent.
The perpetual notes are issued under Regulation S in denominations of $200,000 and multiples of $1,000 in excess thereof.
Regulation S refers to securities offered in another country. AYC Finance Ltd., an Ayala subsidiary incorporated in the Cayman Islands, is the issuer of the perpetual notes.
The perpetual notes were more than four times oversubscribed, with orders mainly coming from Asia and Europe. Fund managers, insurance companies and pension funds accounted for more than half of the investors, while the rest were banks and financial institutions.
The transaction is expected to be completed by October 30.
“We are grateful for the unwavering support from the investors despite volatile market conditions. This issuance will provide us with additional flexibility to lengthen our maturity profile and support our strategic initiatives,” Ayala Chief Finance Officer Jose Teodoro Limcaoco said.
The Hongkong and Shanghai Banking Corp. Ltd. is the sole global coordinator of the transaction.
BPI Capital Corp., Credit Suisse (Hong Kong) Ltd., HSBC (B&D), JP Morgan Securities Plc. and the Singapore branch of UBS AG are tapped as the joint lead managers and book runners.
China Bank Capital Corp. and BDO Capital and Investment Corp., meanwhile, are the domestic lead managers.
“The successful fixed for life issuance will further support our thrust for sustainable growth and enable Ayala Corporation to diversify our liquidity sources and strengthen our balance sheet. We are very pleased with the strong investor receptivity and continued support,” Ayala Chairman and Chief Executive Officer Jaime Augusto Zobel de Ayala said.
Ayala’s consolidated net income during the first semester more than doubled to P56.14 billion from the year-earlier P27.64 billion on the back of the robust performance of its real estate, banking and telecommunications segments.
Ayala shares were down 50 centavos or 0.06 percent to close at P865 apiece on Thursday.