MANILA, April 11 Philippine conglomerate Ayala Corp has sold $300 million worth of five-year bonds that are exchangeable for common shares of its property unit Ayala Land Inc, seeking to raise funds for investment opportunities in growth areas.
"The bonds, which were offered to qualified institutional buyers, were 2.5 times oversubscribed," Fernando Zobel de Ayala, President and COO of Ayala Corp said at the company's stockholders meeting on Friday.
The bonds, maturing on May 2, 2019, have interest of 0.50 percent, payable semiannually.
They will be initially exchangeable at 36.48 pesos per Ayala Land share starting June 11. Ayala Land shares were trading at 29.35 pesos on Friday.
Ayala Corp CFO Delfin Gonzalez said 60 institutional investors participated in the sale, with Asian and European institutions each accounting for 45 percent of takers, with U.S. firms based outside the U.S accounting for 10 percent.
The company said starting May 2, 2017, bond-holders can ask for the bonds' repurchase at 100 percent of the principal amount. The conglomerate added it can call the bond should Ayala Land shares trade at at least 130 percent of the exchange price for 30 consecutive trading days.
The sole international book runner is Goldman Sachs International, and the domestic lead manager is BPI Capital Corp.
In addition to Ayala Land, Ayala Corp also owns the country's second-biggest telecommunications carrier Globe Telecom and the Bank of the Philippine Islands . (Reporting by Siegfrid Alegado and Rosemarie Francisco; Editing by Edwina Gibbs)