Ayala Corp. signs $200-M Samurai loan

AYALA CORP. has signed its first yen-denominated loan worth $200 million (P11.5 billion) as part of its strategy to diversify capital sources at competitive rates to support expansion.

The loan agreement, signed on March 19, designates Mizuho Bank, Ltd. and Sumitomo Mitsui Banking Corp. (SMBC) as mandated lead arrangers and bookrunners, the company said in an e-mail statement on Thursday.

Proceeds will be used for general corporate purposes.

“This maiden yen-denominated loan broadens Ayala Corp.’s partnership with Japanese financial institutions, particularly Mizuho and SMBC. The samurai loan enhances Ayala Group’s capital-raising options and helps us better grow businesses that enable people to thrive,” Ayala Corp. Treasurer Estelito C. Biacora said.

The company recently secured an “A-” credit rating from the Japan Credit Rating Agency, Ltd., enhancing its access to the Japanese debt market.

“While high interest rates are anticipated to persist, the cost of capital is expected to remain competitive. When we have widened access to capital, we are more able to build businesses that enable people to thrive,” Mr. Biacora said.

For 2024, Ayala Corp.’s core net income rose 10% to a record P45 billion, driven by strong performance in banking, real estate, telecommunications, and renewable energy.

The conglomerate has earmarked P230 billion for its consolidated capital expenditures this year.

Beyond its core businesses, Ayala Corp. continues to expand its presence in healthcare, mobility, logistics, and industrial technologies, alongside investments in education and emerging sectors.

On Thursday, Ayala Corp. shares fell 0.33% or P2 to P604 apiece. — Revin Mikhael D. Ochave