Ayala Corp to raise P15 billion from preferred shares issue

MANILA, Philippines — Ayala Corp., the country’s oldest conglomerate, is planning to raise as much as P15 billion from the issuance of preferred shares.

In a stock exchange filing, Ayala said that its board approved the issuance of preferred shares with a base amount of P10 billion.

The planned issuance will have an oversubscription option for up to an additional P5 billion.

Ayala said the terms of the issuance would still have to be finalized.

The Ayala Group has earmarked P284 billion in capital expenditures this year, up by 14 percent from last year, with its property and energy units poised for higher spending to support their expansion.

Ayala chief financial officer Alberto de Larrazabal earlier said the company on the parent level is looking to raise up to P29 billion this year to finance maturing obligations.

“The funding requirement at the parent for this year is about P19 billion and that is really meant just to refinance existing debts. That could go up to P29 billion toward the end of the year as we anticipate another maturity in the first quarter,” he said.

For the first quarter, Ayala’s core earnings, which excludes one-off items, grew by 26 percent to P11.8 billion on the back of continued strong performances of its core businesses.

Including one-off items, Ayala’s net income grew by 28 percent year-on-year to P13 billion during the quarter.

Meanwhile, Ayala’s board also approved a regular cash dividend of P4.1866 per common share for the first semester.

The record date is July 11, 2024 and payment will be made on July 26, 2024.