Ayala Corp. plans up to P30-billion bond program

LISTED CONGLOMERATE Ayala Corp. has moved to secure regulatory flexibility for future fund-raising after its board approved a plan to register up to P30 billion in peso-denominated bonds with the Securities and Exchange Commission (SEC).

In a disclosure on Thursday, the company said its board, acting on the recommendation of its finance committee, approved the filing of a five-year shelf registration.

The registration will allow Ayala Corp. to issue bonds in tranches over time, instead of seeking separate regulatory approval for each offering.

The company said the required documents and disclosures will be submitted to regulators in the coming months.

AP Securities, Inc. Equity Research Analyst Shawn Ray R. Atienza said the move is typical for large, diversified groups with ongoing capital requirements across multiple businesses.

“The shelf registration improves Ayala Corp.’s capital-raising flexibility and streamlines future bond issuances by eliminating the need for repeated SEC approvals,” he said in a Viber message.

Ayala Corp. is the holding company of the Ayala Group, with businesses spanning real estate, banking and financial services, telecommunications, power generation, healthcare, logistics, infrastructure, industrial manufacturing, education, and technology services.

At the stock exchange on Thursday, shares in Ayala Corp. rose 2.1% to close at P534 apiece. — Alexandria Grace C. Magno