Ayala Corporation’s P5-billion bonds, carrying a fixed coupon rate of 4.4542 percent per annum, will be fully redeemed on their maturity date, 26 May 2025.
Under the terms of the float, Ayala will pay back the principal in cash along with any interest owed, closing out the bond’s lifecycle.
The coupon rate of 4.4542 percent reflects the cost of borrowing for Ayala at the time of issuance, balancing investor appeal with the company’s financing needs.
The series C bonds were part of AC’s more enormous P15 billion fixed-rate bond issuance in 2022, which also included Series D Bonds due 2027 and Series E Bonds due 2029.
It was the second tranche of Ayala’s P30 billion shelf-registered debt securities program, approved by the Securities and Exchange Commission (SEC).
Shelf registration allows a company to register a large number of securities and issue them in phases, giving flexibility to tap markets when conditions are favorable.
The P5.0 billion Series C Bonds were issued on 26 May 2022, with a three-year tenor, maturing in 2025.
The issues were rated PRS Aaa with a Stable Outlook by the Philippine Rating Services Corp. (PhilRatings), signaling the highest credit quality and minimal risk of default.
The rating reflects Ayala’s strong financial position and market confidence in its ability to meet obligations.
For investors, the bonds offered a relatively safe fixed-income option with a yield above government securities but below riskier corporate debt.
Ayala stated that proceeds from the 2022 bond issuance were primarily used to:
•Refinance existing debt such as paying off shorter-term or higher-cost obligations to optimize its debt profile;
• To finance capital expenditures: Supporting growth initiatives across its diverse portfolio; and
• For general corporate purposes: Providing liquidity for operations or strategic investments.
Ayala’s capital-intensive businesses — like real estate (Ayala Land), banking (BDO Unibank), and infrastructure — require substantial funding. Chito Lozada