Month: December 2017

Aboitiz InfraCapital, Inc., AC Infrastructure Holdings Corporation, Alliance Global Group, Inc., AEDC, Filinvest Development Corporation, JG Summit Holdings, Inc., and Metro Pacific Investments Corporation have all agreed to form a consortium to rehabilitate, operate, and maintain the Ninoy Aquino International Airport (NAIA) through an unsolicited proposal which it plans to submit to the Department of Transportation.

The consortium believes that the NAIA will continue to be a strategic gateway for our country and a key hub of airline operations for many more years. The consortium will work with foreign technical partners with proven world class track records and experiences in airport operations to improve, upgrade, and enhance the operational efficiencies of NAIA covering both landside and airside facilities.

Numerous foreign and local experts have highlighted the advantage of keeping an airport within city limits. Like other major cities in the world, experts recommend an in-city airport and another one outside the metropolis to complement it. Megacities that benefit from a two-airport set-up include Tokyo (Haneda and Narita) and London (Gatwick and Heathrow).

Given proper upgrades and strategic improvements, NAIA can easily accommodate an additional 11 million passengers annually from the current 39.5M passengers, and can increase its hourly aircraft movements (landing and take-off) from 40 movements per hour to 48 movements per hour.

The unsolicited proposal is intended to help accelerate the government’s “Build Build Build” program. Augmenting NAIA’s capacity is the quickest way to address airport congestion whileother airports are being developed outside Metro Manila. The consortium believes that this approach promotes greater economic benefit and sustainability for the whole country.

AC Infrastructure Holdings Corp. is the Ayala group’s wholly owned subsidiary that selectively pursues projects to support the growing infrastructure needs of the public and private sectors. 

For inquiries and additional information, please contact: 

JQ Quesada, AC Infra Corp Comm, Sustainability and Risk Manager
quesada.jam@ayalacorp.onmicrosoft.com
+63917810605

Thomson Reuters’ International Financing Review Asia (IFR Asia) named Ayala Corporation’s US$400-million fixed-for-life perpetual bond as the Philippine Capital Market Deal for 2017. IFR Asia is the leading source of fixed income, capital markets and investment banking news and commentary. In its special report, Review of The Year 2017, IFR Asia cited how the Ayala deal drew strong demand from both offshore investors and domestic institutions flush with dollar liquidity, managing to close multiple times oversubscribed with final orders of over US$2.5Bn.

IFR Asia’s citation lauded Ayala Corporation’s issuance of a US dollar-denominated perpetual bond in September that set a precedent in the Philippines for fixed-for-life bonds.  The report cited that Ayala’s first offshore issue since 2003 attracted heightened demand from investors looking for quality Philippine exposure and how Ayala was primed to respond, upsizing the issue and accelerating launch of the deal in the middle of its investor roadshow.  The Ayala bond was the first ever Asean corporate fixed for life perpetual.

Aside from allocating the proceeds to refinance the issuer’s maturing US dollar obligations and to fund investments, the deal also enables Ayala to pursue new opportunities, expansions and acquisitions in the years to come. This is aligned with Ayala’s integration of its strategy and operations with its sustainability framework, as the group continues to expand its long-standing businesses in real estate, banking, water systems and telecommunications while diversifying into new sectors; particularly, industrials, infrastructure, energy, health and education, which are critical to the Philippines’ socio-economic progress.  

Asset Publishing and Research Ltd, a Hong Kong-based integrated multi-media company serving an elite community of leading corporate and financial decision makers in Asia, awarded Ayala Corporation on November 30, 2017 as The Asset Triple A Country Awards 2017’s Best Corporate Bond in the Philippines for its US$400 million senior unsecured and guaranteed fixed-for-life perpetual Notes, which were issued last September. The award was included in its Best Deals in Southeast Asia category.

The Asset Awards are Asia’s preeminent recognition for those that have excelled in their respective industries. With close to 20 years of experience, the awards programs are built upon a stringent methodology that is combined with a rigorous approach in selecting the best institutions and individuals operating in Asia.

The issuance, a US dollar-denominated fixed-for-life senior perpetual issuance at an aggregate principal amount of US$400 million with an annual coupon of 5.125% for life with no step-up in Southeast Asia and the first fixed-for-life with no step-up (and reset) deal in the Philippines, was commended by The Asset for “setting a precedent in the country for the fixed-for-life bonds”. HSBC was sole was sole global coordinator, with Deutsche Bank, HSBC and JP Morgan as joint lead managers and BPI Capital Corporation and China Bank as domestic lead managers.

The offering was more than five times oversubscribed, with investors’ confidence reflecting the high quality of the Ayala signature. “This successful launch of fixed-for-life Notes provides us with the financial flexibility to manage our balance sheet and diversify our sources of capital. We are grateful for the continued support we have received from investors that is clearly reflected in this issuance,” said Ayala Corporation Chairman and CEO Jaime Augusto Zobel de Ayala.

Now on its 19^th year, The Asset’s annual Triple A recognition represents the industry’s most prestigious awards for banking, finance, treasury and the capital markets.