Zobel-led Ayala Corp., the country’s oldest conglomerate, has signed its first yen-denominated term loan equivalent to $200 million (₱11.5 billion) as part of efforts to diversify funding sources at competitive rates to support business growth.
The signing comes after the firm received a positive credit rating appraisal from Japan Credit Rating Agency Ltd. (JCR).
Mizuho Bank Ltd. and Sumitomo Mitsui Banking Corp. (SMBC) served as the mandated lead arrangers and bookrunners. Ayala said proceeds will be used for general corporate purposes.
A ceremonial signing event was held on March 19 and was attended by Ayala Chief Finance Officer Alberto M. de Larrazabal and Treasurer Estelito C. Biacora, Mizuho General Manager Masaaki Wada and Joint General Manager Yasunori Iwamoto, and SMBC Country Head and Managing Director Yasushi Iwata and Executive Director and Head of Corporate Banking Ruben Victa.
Ayala received competitive rates for the loan, as the company recently earned an inaugural foreign currency long-term issuer rating of “A-” from JCR that enhances its access to the Japanese market for capital needs.
The rating indicates a relatively high level of creditworthiness and suggests that Ayala has a strong capacity to meet its financial commitments.
“This maiden yen-denominated loan broadens Ayala Corp.’s partnership with Japanese financial institutions, particularly Mizuho and SMBC. The samurai loan enhances Ayala Group’s capital raising options and helps us better grow businesses that enable people to thrive,” Biacora said.
Wada noted that, "We, Mizuho Bank, as Ayala’s long-standing financial partner, are deeply honored to have played a key role as the rating advisor for Ayala’s first JCR rating. This achievement reflects our strong partnership and shared commitment to financial excellence.”
Last week, Ayala disclosed to the Philippine Stock Exchange that it is raising up to ₱31.5 billion through the issuance of preferred shares and samurai loans to fund the expansion of its diversified businesses.
Aside from the yen loan, the firm said its board of directors approved issuing Philippine peso preferred shares worth up to ₱20 billion.
The planned issuance will have a base amount of ₱10 billion, with an oversubscription option for up to an additional ₱10 billion, as endorsed by Ayala’s finance committee, subject to regulatory requirements.