Ayala's strong rating boosts yen loan access

Ayala Corp. (AC), the country’s oldest conglomerate, has secured an inaugural Foreign Currency Long-Term Issuer Rating of “A-” from the Japan Credit Rating Agency, Ltd. (JCR) — enhancing its access to yen-denominated loans for growth initiatives at competitive rates.

JCR’s Monday report said the Ayala Group carries a Stable outlook that signifies a high level of creditworthiness and a strong capacity to meet financial commitments aligned with the Philippine Sovereign Rating.

The rating expands Ayala's ability to tap into credit and capital markets, broadening its investor base and providing access to Samurai loans. Mizuho Bank advised the company on the rating.

For AC Treasurer Estelito C. Biacora, the affirmation ensures the Group can continue tapping the equity market despite market volatility.

“While high interest rates are anticipated to persist, the cost of capital is expected to remain competitive. When we have widened access to capital, we are more able to build businesses that enable people to thrive,” Biacora said.

JCR's report noted Ayala's strong business foundation, supported by its four main segments that generate stable cash flow, and a favorable financial balance that bolsters its growth potential.

JCR also pointed out that future factors to watch include interest rate changes, trends in the real estate market, and regulations affecting cash flow generation and financial balance across Ayala’s investments. As such, the agency will continue to closely monitor the impact of Ayala’s renewable energy expansion on its financial position.

Ayala’s energy arm, ACEN Corp., has entered the Malaysian energy market with a $13 million investment in solar projects. The projects are being developed by IBV ACEN Renewables Asia, a joint venture between ib vogt (Singapore) Pte. Ltd. and ACEN Renewables International Pte. Ltd.

The investment is part of Ayala Group’s plan to contribute up to $200 million, with the joint venture targeting at least 1,000 megawatts (MW) of operational capacity in the region, with potential for further growth.

ACEN aims to generate 20,000 MW of renewable energy capacity by 2030 and achieve net-zero greenhouse gas emissions by 2050.