April 01, 2015

Ayala Corp sees power portfolio to exceed 1,000 MW initial target

In a disclosure to the Exchange, Ayala Corp (AC) clarified news reports regarding its prospective investments and said its power portfolio can exceed its initial attributable capacity target of 1,000 MW.

Based on its pipeline, the company said its various power ventures are pursuing several power projects with a combined capacity of 2,000 MW by 2016. Out of these projects, AC’s attributable capacity can expand by another 500 MW. The company also said that it is looking at other infrastructure projects including the P171b North-South rail project.

Our take: We view the company’s moves and investment plans positively as these will bode well for its diversification efforts. AC is looking at the new investments to account for about 10% of equity earnings contribution.

While the company has room to finance the investments with debt, it has also not ruled the possibility of issuing the remaining carved out shares as a financing option. – WealthSec