Conglomerate Ayala Corp. has issued $400 million worth of fixed-rate perpetual notes, marking its return to the international bond market.
The dollar-denominated senior (non-deferrable) notes issued by AYC Finance Ltd and guaranteed by the conglomerate, carried an annual coupon of 3.9%, the lowest yielding unrated fixed and the third lowest in Asia.
The deal was 4.4 times oversubscribed with final orders breaching $1.75 billion on strong demand from high quality investors.
“As we reposition our portfolio to adapt to the rapidly changing environment, the success of this issuance strengthens further our financial position that enables us to scale investments in critical sectors and do our part in helping reinvigorate the Philippine economy”, said AC president and CEO Fernando Zobel de Ayala.
Proceeds from the notes issuance will be used to refinance outstanding dollar-denominated obligations including those bonds issued in 2019.
This fund-raising exercise is part of AC’s active management exercise responsibility to take advantage of capital market opportunities if and when they arise.
BPI Capital Corp., Citigroup Global Markets Singapore Pte. Ltd., Credit Suisse (Singapore) Ltd., J.P. Morgan Ltd., Mizuho Securities (Singapore) Pte. Ltd. and UBS AG Singapore Branch are the joint lead managers and joint bookrunners for the transaction.
AC is one of the oldest business houses in the Philippines with wide-ranging business interests in property, banking, telecommunications, power, healthcare, logistics, water, industrial technologies, infrastructure, education, and technology ventures.