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
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)