IN AN impressive move that underscores its strategic vision and financial acumen, Ayala Corporation successfully raised P15 billion from the listing of Class B preferred shares in the Philippine Stock Exchange on October 15. This capital raise is more than just a financial maneuver; it’s a testament to Ayala’s commitment to building businesses that enable Filipinos to thrive.
These preferred shares, amounting to 7.5 million in total – including an oversubscription of 2.5 million shares to meet high demand – demonstrate the strong confidence both institutional and small investors have in Ayala’s business model and future prospects. This latest issuance is a pivotal step in Ayala’s ongoing efforts to strengthen its balance sheet and support its diverse portfolio.
Said Cezar P. Consing, President and CEO of Ayala Corporation: “The P15 billion preferred shares that we list today will help us continue to build businesses that enable people to thrive. Our newer businesses in healthcare, logistics, education, fintech, and electric mobility will benefit from our ability to raise funding at the center. Our objective is to grow these to scale, so that even these relatively newer businesses can have positive impact on the lives of a significant number of our countrymen.”
Ayala CFO Albert de Larrazabal explained that Ayala plans to utilize the proceeds from this issuance to redeem its previous P15 billion Class B preferred shares issued in 2019. Should the optional redemption feature not be exercised, the shares would reprise at a benchmark rate significantly higher than the current dividend rate of 6.0538% per annum, which makes the redemption not only a strategic financial move but also a prudent decision to manage costs effectively. De Larrazabal added: “As we celebrate Ayala’s 190th anniversary this year, we see this issuance as supportive of Ayala’s balance sheet resilience and growth momentum.”
Estelito C. Biacora, Ayala Treasurer, noted the overwhelming investor response, with the total book size reaching P30.2 billion – three times oversubscribed from the P10 billion base offer reflecting the market’s trust in Ayala’s vision. “We are delighted to see strong retail and institutional demand, coupled with good market timing and supportive equity and interest rate markets backdrop. This issuance translates savings per annum of roughly 270 basis points relative to the 2019 preferred shares step-up rate.”
This successful capital raise – managed by BPI Capital (headed by President Junie Veloso) and supported by BDO Capital, China Bank Capital, RCBC Capital, PNB Capital, First Metro Investment Corporation -marks another milestone in Ayala’s storied history. It paves the way for future growth and underscores Ayala’s steadfast commitment to driving economic progress and innovation in the Philippines. As Ayala navigates the complexities of the global financial landscape, its strategic foresight and financial discipline remain key to its enduring success.
Strategic Partnership
In another recent move, Ayala Corporation once again demonstrated its strategic foresight by securing a $200 million senior long-term loan facility from Metropolitan Bank and Trust Company (Metrobank). This marks another partnership that has thrived for over three decades, underscoring the trust and mutual commitment between these two industry giants.
Signed on September 16 by Ayala CFO Alberto de Larrazabal and Treasurer Estelito Biacora, alongside Metrobank’s Head of Institutional Banking Sector Mary Mylene Caparas and Head of Large Corporates Maria Elena Trinidad, this loan facility is set to support Ayala’s ambitious financing initiatives. The funds will be channeled into Ayala’s emerging portfolios, particularly in technology and payments, health, logistics, and mobility – sectors that are pivotal for future growth and innovation.
Following the signing, Metrobank conducted an insightful economic briefing for the Ayala Group Treasury Council. The briefing, delivered by experts Nicholas Mapa, Ricardo Pedrosa, John Lu, and Kael Pasimio, covered key themes on global and Philippine interest rates and foreign exchange outlook. Undoubtedly, their insights on currency and interest rate trends, as well as yield curve shifts, will be crucial for Ayala’s corporate financing and treasury planning.
As Ayala and Metrobank continue to build on their long-standing partnership, their collaborative efforts will definitely contribute to a brighter and more prosperous future for the Filipino people. (totingbunye2000@gmail.com)/PN
