Philippines News Archives

Friday, February 18, 2000

AC ( 02/18/2000 : PSE )
This has reference to the PSE communication of today requesting for clarification on the news item which appeared in today's issue of the Business World regarding Ayala Corporation's proposed financing activities. In reply, the company wish to inform the PSE that:

* Ayala Corporation has not come up with any definite timetable for the issuance of its Common X shares. The issuance of said shares will be dependent on a number of factors, including the conditions of the equities market as well as the utilization of proceeds from such issuance.*

The company have received offers from various financial institutions for credit facilities in varying amounts. The company continue to review these financing proposals but there has been no decisions as yet as to whether they will accept these proposals.
- posted by StockMarket @ 11:04 PM

AC ( 02/18/2000 : BW )
The prevailing slump in the market has prompted the Ayala Group of Companies to temporarily delay the planned issuance of its 200 million common X shares this year and instead tap the debt market to raise funds for its projects. A company official, speaking on condition of anonymity, told BusinessWorld that the conglomerate is currently discussing with a number of foreign and local institutions to raise $200 million to $400 million this year. "The capital market is not good so the issuance of the shares will not happen this year. We've decided to tap the debt market and we're now in discussions with a combination of local and foreign sources to raise somewhere between $200 million and $400 million, depending on whether the terms are agreeable to all parties," the company source said. The Ayala official disclosed that the management originally planned to use the proceeds from the X share offering to finance the mergers of banking arm, Bank of the Philippine Islands (BPI) with Far East Bank and Trust Co. and that of affiliate Ayala Insurance Holdings Corp. as well as for the expansion of telecom subsidiary, Globe Telecom GMCR, Inc. However, the unfavorable condition of the market -- which the conglomerate fears would turn off investors to participate in the offer -- made the management decide to temporarily shelve the planned issuance this year, the source said. Last year, Ayala already signed a term loan facility with Barclays Capital, Bank of America and ABN Amro Bank. Under the agreement, the banks will provide the company with cash totaling $150 million should it decide to avail of the loan at any time. The company official added that the bulk of the loan go to the telecoms business which is in dire need of upgrading its cellular infrastructure. Last year, Globe has already allotted P13bn (US$32 million at PhP40.56:US$1) for the improvement of its cellular network as well as for the expansion of its coverage. Its services, however, remain poor. Aside from Globe, the conglomerate will also allocate a portion of the money for investments in other Ayala subsidiaries. The source added that a number of fixed-income investors have likewise approached the management for bond issuances but Ayala declined since the money that will be raised from the debt market will be enough for investments this year. The loan will enable the Ayala Group to allot P22bn ($542.4 million) to finance capital expenditure requirements this year of which P16bn ($394.5 million) will go to Globe.
- posted by StockMarket @ 11:04 PM

AC ( 02/18/2000 : AFX )
Ayala Corp has yet to issue the common X shares, managing director Rufino Luis Manotok said. The share offer, carrying a par value of 10 pesos each or 10 times greater than the existing common shares' 1.0 peso, was approved by shareholders early 1999. Manotok said the company "has not come up with any definite timetable" for the issue. The launch of the offer, he said, will depend on certain factors, including the prevailing market situation and the Ayala's financing needs.
- posted by StockMarket @ 11:03 PM

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