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United States : AYALA CORP prefers to issue to fund its power

August 28, 2014

Ayala Corp. plans to raise P15 billion by issuing shares towards the end of the year, with the proceeds to finance its power and infrastructure projects.

The stock exchange, Ayala Managing Director and CFO Delfin C. Gonzalez, Jr. said that the company s board of directors has approved the re-issuance and offering up to 30 million new preferred class-B shares.

The shares will be offered at P500 apiece, with a fixed quarterly dividend rate.

Timing of the share issuance is to the end of the year. This is in preparation for future investments including power and infrastructure projects.

The company said that the rate will be a premium on either the 5-year or 7-year PDST-RT benchmark.

Just like its outstanding series of preferred B shares, the new shares are structured as perpetual equity securities with preference in the payment of dividends, while payment of current dividends will be cumulative.

The new series will be non-convertible and shall have no voting and preemptive rights.

BPI Capital Corp. was tapped as the issue manager.

The offer of this new series, is subject to regulatory approvals.

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Source: TendersInfo (India)

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