Ayala Corporation is seeking the approval of the Securities and Exchange Commission for its planned issuance of up to P15 billion worth of fixed rate bonds as the second tranche of its P30 billion shelf registered debt securities program.
In a disclosure to the Philippine Stock Exchange, Ayala said it has filed a Registration Statement for the proposed issuance of Series C Bonds due 2025, Series D Bonds due 2027, and Series E Bonds due 2029.
Ayala said “the proposed issuance of the Bonds obtained the highest issue credit rating of PRS Aaa (with a Stable Outlook) from the Philippine Rating Services Corporation. Obligations rated as PRS Aaa are of the highest quality with minimal credit risk.”
A PRS Aaa rating likewise signifies that Ayala’s capacity as an obligor to meet its financial commitment vis-à-vis the obligation is extremely strong.
PhilRatings has also maintained the PRS Aaa Issue Credit Rating, with a Stable Outlook, for each of the following outstanding bonds of Ayala, with a total amount of P40.0 billion: P10.0 billion due in 2023, P4.0 billion due in 2024, P10.0 billion due in 2025, P6.0 billion in 2026, and P10.0 billion due in 2027.
The proceeds from the proposed bond issuance will be used for refinancing certain Philippine Peso-denominated obligations of the Company, for partially funding its capital expenditures (capex), and for general corporate purposes.
PhilRatings said the assigned issue credit ratings take into account AC’s strong brand equity and leading market position for its core businesses and its experienced management team with strong track record.
Also factored in is improving economic situation amid declining COVID-19 cases and increasing vaccination rate, AC’s improved profitability, and its sound capitalization and sufficient liquidity.
AC and its subsidiaries’ consolidated net income in 2021 amounted to P36.0 billion, up by 23 percent from 2020. Net income attributable to owners of the Parent (AC) significantly grew by 62 percent to P27.8 billion.
Improvement was largely on account of the realized income from the execution of strategic initiatives in the Group, bolstered by the pickup in the performance of Ayala Land and Bank of the Philippine Islands.
AC maintains access to a considerable amount of available credit lines. These provide the Company with additional flexibility in sustaining operations, servicing debt obligations and funding growth opportunities as they arise.