Philippines News Archives

Friday, July 28, 2000

AC ( 07/28/2000 : PSE )
This has reference to the news article entitled "Ayala Corp to raise up to P3 B from local market" published in the July 26, 2000 issue of the Philippine Star. The article reported that Ayala Corporation ("AC") is raising P2 B to P3 B in five-year notes from the domestic market to finance capital expenditures, particularly for its mobile telecommunications subsidiary, Globe Telecom. The loan facility is expected to be completed within 30 days. AC, in its letter to the Exchange dated July 27, 2000, clarified that: "x x x we confirm that as part of the Company's continuing program, we are preparing for a fund raising activity where the proceeds will be utilized to finance our capital expenditures. The remaining proceeds from the program will form part of our working capital. x x x"
- posted by StockMarket @ 11:46 PM

Thursday, July 27, 2000

AC ( 07/27/2000 : AFX )
Ayala Corp is preparing to raise funds for its capital expenditure programme and working capital, the company told the stock exchange in reaction to a newspaper report that it will raise 2-3 B pesos. "We confirm that as part of the company's continuing programme, we are preparing for fund raising activity where the proceeds will be utilised to finance our capital expenditures. The remaining proceeds from the programme will form part of our working capital," the company said, but gave no figures. Ayala Corp was reacting to a report by the Philippine Star newspaper which said that the company will raise the 2-3 B pesos in five-year notes from the domestic market to finance capital expenditures.
- posted by StockMarket @ 11:46 PM

Wednesday, July 26, 2000

AC ( 07/26/2000 : STAR )
One of the country's top conglomerates, Ayala Corp., is raising P2 billion to P3 B in five-year notes from the domestic market to finance capital expenditures, particularly for its mobile telecommunications subsidiary, Globe Telecom, a ranking company official told The STAR yesterday. "We are preparing for a P2-B to P3-B loan from a consortium of banks," the official, who requested anonymity, said. "It will have a five-year maturity." The loan facility is expected to be completed within 30 days. He said proceeds of the loan would be used to finance Globe Telecom's expansion projects. "The expansion of Globe is continuing and that requires a lot of money. We should not run out of cash for it. It is expanding to keep up with ever-growing demand," he said. Analysts said Globe is aiming to be the country's number one cellular phone provider, with its subscriber base expected to reach more than one million this year. "Stronger competition, improved product awareness and technological advancements will continue to make cellular not only an increasing important communication tool but also as an alternative access and entry point to the Internet," an analyst from a local brokerage house said. To keep up with this trend, the analyst said Globe will be spending P15 B to assure quality network capacity, access and efficiency for its network subscribers. The Ayala Corp. official said the new loan being worked out is on top of the $100-M five-year loan facility it sealed with a foreign bank in Hong Kong, China last May. The official said tapping local bank loans right now is cheaper than issuing bonds abroad as yields have gone up after the US Federal Reserve raised its interest rates, causing yields on domestic debt papers to move up. Ayala Corp. has to finance about P20 B in capital expenditure this year the bulk of which (or around P16 B) would go to its subsidiary, Globe Telecom. Last year, the company had planned to issue common X shares to raise funds. This was approved by its shareholders in April last year. However, unfavorable condition in the local equities market prevented the firm from issuing the shares. Its issuance has been temporarily shelved until the market recovers.

- posted by StockMarket @ 11:45 PM

Tuesday, July 25, 2000

AC ( 07/25/2000 : AFX )
Globe Telecom Holdings Inc said it has filed a registration statement with the Philippine Securities and Exchange Commission to offer up to 12 M Philippine Depositary Receipts. Globe Telecom, Ayala Corp and Singapore Telecom International Pte Ltd each own 33.33 pct of Globe Telecom Holdings Inc. Globe Telecom common shares will be used as underlying security for the PDRs. Globe Telecom Holdings will also conduct an initial exchange offer allowing existing shareholders of Globe Telecom to exchange their common shares for PDRs. A mechanism will also be in place after the offering which will allow common shareholders of Globe Telecom continued flexibility in being able to exchange their common shares for PDRs. Globe said the proceeds of the PDR issue will be used largely to fund a portion of its capital expenditure programme for its wireline business this year and in 2001. A portion will also be used for working capital, other capital expenditures and other corporate purposes.

- posted by StockMarket @ 11:45 PM

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