IFR Asia Names Ayala’s US$400M Fixed-for-Life Perpetual Bond as Deal of the Year in its 2017 Review

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.