Conglomerate Ayala Corp. set the interest rate for the planned P10-billion eight-year bond offering at 4.82 percent per annum, one of the underwriters handling the transaction said.
BPI Capital Corp. managing director Eric Luchangco said the 4.82-percent interest rate was higher than the P10-billion seven-year bonds issued by the conglomerate in July last year which was priced at 3.92 percent per annum.
“It is higher because interest rates have gone up since that time,” Luchangco said.
Luchangco said while the offer period would start Tuesday, there was a significantly strong demand for Ayala Corp.’s P10-billion bonds.
“Demand is very strong. The bond is highly subscribed and there is more than enough to fill the requirements. Basically we have little left to be offered to investors,” Luchangco said.
Ayala Corp. plans to issue P10-billion fixed-rate bonds due 2025, the second and last issuance of the company in relation to its three-year fixed rate bonds program worth P20 billion earlier approved by the Securities and Exchange Commission.
The proceeds from the bond issuance will be used to refinance the group’s outstanding PRS-rated bond issuance of P10 billion maturing on April 30, 2017.
The conglomerate hired BPI Capital, China Bank Capital Corp. and PNB Capital and Investments Corp. as joint issue managers and BDO Capital & Investments Corp., BPI Capital, China Bank, East West Banking Corp., First Metro Investments Corp. and PNB Capital as joint lead underwriters.