Connect with us

Hi, what are you looking for?

Economy

Ayala says debt program to pay loans, fund capex

AYALA CORP. will use the net proceeds from the P6-billion first tranche of its proposed debt securities worth up to P30 billion to repay short-term loans and to fund its capital expenditure.

According to the prospectus Ayala sent to the Securities and Exchange Commission on Tuesday, some P4.9 billion will be used to finance the repayment of its peso-dominated obligations or short-term loans and will be disbursed by the second quarter of 2021.

Around P1 billion will be allocated for its capital expenditure (capex), which will be disbursed in the third and fourth quarter of the year.

The remaining balance from the net proceeds will be used to fund general corporate purposes.

The debt securities program is expected to bring net proceeds of P5.9 billion from the first tranche. Should the oversubscription option of P4 billion be exercised, the company said its net proceeds might reach P9.9 billion.

Assuming the oversubscription option is exercised, financing for the repayment for short-term loans will amount to P8.9 billion and the funding for the company’s capital expenditures will remain at P1 billion.

“Correspondingly, if the oversubscription option is partly exercised or not exercised at all, or net proceeds are less than the above total, Ayala will satisfy the balance of the above from internally generated funds and/or other credit facilities, which may include bank borrowings, as Ayala may consider commercially favorable at the relevant time,” the company said.

BPI Capital Corp. has been tapped to be the issue manager, joint lead underwriter, and bookrunner for the transaction.

BDO Capital & Investment Corp., China Bank Capital Corp., First Metro Investment Corp., and SB Capital Investment Corp. have been assigned as joint lead underwriters and bookrunners.

Ayala shares at the exchange declined by 1.6% or P12 to close at P740 on Wednesday. — Keren Concepcion G. Valmonte

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

Post Office collection and cash delivery workers are to stage a one-day strike later this month in a dispute over pay. Members of the...

Investing

UK consumers cut back on credit card borrowing in May amid fears over rising interest rates and a slowing economy driven by a cost...

Investing

The bank said that it was introducing a £1,200-a-year pay increase from August 1, which would start to show in next month’s pay packets....

Investing

Postmasters caught up in the Horizon IT scandal say that they are still being “left in the dark” about a compensation package after the...

Economy

Expenditures for environmental protection declined by 4.6% year on year in 2021, data from the Philippine Statistics Authority (PSA) showed. The statistics agency’s Compendium...

Investing

BT staff have voted for their first national strike in 35 years, which is expected to affect customers across the country having broadband services...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.