THE Philippines’ oldest conglomerate has fully redeemed its bonds ahead of their maturity.
In a disclosure to the Philippine Stock Exchange, Ayala Corp. said it has fully paid on Tuesday an aggregate redemption amount of P6.13 billion, including accrued interest and an early redemption penalty of half a percent, in accordance with the terms and conditions of the trust indenture agreement in 2007.

The payment was effected through Bank of the Philippine Islands—Stock Transfer Office, the appointed paying agent for the bonds. The bonds were bought back at 100 percent of the issue price.

Issued in November 2007, the P6-billion bonds were the first corporate issue admitted for trading on the Philippine Dealing and Exchange Corp. Inter-Professional Market.

In May, AC listed P10-billion fixed rate multiple put bonds at the PDEx with a coupon rate of 6.80 percent per annum. The 10-year bond will mature in 2021, but will have a 20-percent partial put option on the fifth year and subsequently the 100-percent full put option on the eighth year to encourage investors to go beyond the normal five-year tenor.

The issuance is the first multiple put bond in the market and the first corporate issue for 10 years for a P10-billion size.

AC plans to use the proceeds of the bond issuance to refinance the company’s P5.8-billion preferred “B” shares whose call option it exercised for payment last July. The balance will be used to fund the conglomerate’s working capital requirements. The Ayala group has principal business interests in real estate and hotels, financial services, telecommunications, electronics, information technology and business process outsourcing services, water utilities and automotive, among others.

Its net income grew by 7 percent to P7.3 billion in the first nine months of the year.

The conglomerate’s shares fell to P296.20 each on Tuesday from P296.60 on Monday.