September 01, 2014

AC to issue preferred shares this year

Ayala Corp (AC) disclosed today that its board of directors has ratified that re-issuance of up to 30m new preferred class B shares for an aggregate amount of up to P15b.

Our take: Together with the US$300m exchangeable bonds issued in May this year, the company has now raised in excess of US$600m in fresh funds. Total parent cash as of end-June amounted to approximately US$850m. At this point, we believe AC is sufficiently capitalized from an equity standing point to finance it various power and infrastructure investments.

It has already spent the bulk of the US$430m committed equity investment on thermal, wind and hydro power projects and has committed to invest another US$600m in new equity investments in the next 12-24 months. This should help ease any market concern on is ability to finance its planned substantial investments. – WealthSec