MANILA, Philippines - Ayala Corp. (AC) has set the dividend rate for its offering of Class B Series 2 preferred shares at 5.575 percent per annum, the conglomerate told the local bourse yesterday.
“The dividend rate was set at the end of trading hours on Oct. 20 following the customary book-building process and reflecting strong investor demand,” AC said.
AC secured the corporate regulator’s go-signal last week to offer shares to the public P10 billion in aggregate issue value, with an oversubscription option of an additional P5 billion.
The offer period runs from Oct. 23 to Oct. 29, with issue date set on Nov. 5.
AC will offer up to 30 million in preferred shares worth P500 apiece for a total amount of P15 billion.
The company intends to use proceeds of the issue solely to refinance certain peso-denominated obligations amounting to P12.95 billion.
The debt obligations include bank loans to BDO (P10 billion), Metrobank (P1.46 billion), and corporate notes from various lenders that include Philippine American Life and General Insurance Co., Philplans First Inc., Philam Bond Fund Inc., and Government Service Insurance System (P1.49 billion).
BPI Capital Corp. has been tapped as issue manager and lead underwriter for the offer. BPI Capital, BDO Capital Corp. and First Metro Investment Corp., meanwhile, are the joint lead underwriters.