Ayala Corporation is raising a maximum of P10 billion from the issuance of peso seven-year retail bonds that will be registered with the Securities and Exchange Commission (SEC).

In a disclosure to the Philippine Stock Exchange Wednesday, AC managing director and treasurer Ramon Opulencia said the firm has already filed its registration statement with the SEC.

The firm will initially make a public offer of P8 billion worth of SEC registered retail bonds at par value but has allotted an oversubscription option of bonds worth up to P2 billion.

BPI Capital Corporation has been tapped to be the issue manager for the bonds which shall carry an interest rate of five year PDST-R2 plus spread. Bondholders will have a one time put option on the fifth year.

The bonds will be issued in scripless form in minimum denominations of P50,000 each and in multiples of P10,000 thereafter.

Ayala reported that profits were flat in 2009 at P8.2 billion due to substantially lower capital gains from share sales last year although, excluding capital gains, net income grew by 34 percent.

The firm said the growth was driven by the strong performance of its major business units, even amidst a sluggish economic environment. Ayala’s total equity share in the earnings of its business units rose by 18 percent to P9.2 billion.

“Our efforts the past few years to strengthen our balance sheet prepared us well for the economic downturn. Our healthy cash position and comfortable gearing kept fundamentals intact across the group,” Ayala president Fernando Zobel de Ayala said.
He said “this position of financial strength amidst a challenging environment kept our focus on strengthening each of our business units, enhancing our current portfolio, and seeking opportunities for future growth.”