AYALA CORP. (AC) is looking at issuing dollar-denominated perpetual bonds, with a selection of banks to handle the issuance.

In a disclosure to the stock exchange yesterday, the listed conglomerate said it mandated several banks for a Regulation S offering of dollar-denominated fixed-for-life (non-deferrable) perpetual notes.

It tapped the Hong Kong Shanghai Banking Corporation Ltd. (HSBC) to be the sole global coordinator for the issuance. Acting as joint lead managers and joint bookrunners are BPI Capital Corp., Credit Suisse (Hong Kong) Ltd., HSBC, J.P. Morgan Securities plc. and UBS AG Singapore Branch.

The offer, it said, is “subject to market conditions.” AC’s wholly-owned subsidiary AYC Finance Ltd. will be the guarantor.

A Regulation S offer is often used for securities that are executed in countries outside United States. It can be used to issue either equity or debt securities to raise capital for a company.

In 2017, AC entered the dollar bond market through AYC Finance with the launching of a $400-million fixed-for-life senior perpetual notes. It had an annual coupon rate of 5.125% for life with no step-up.

A perpetual bond is a fixed-income security that has no maturity date, therefore investors in such bonds are unable to redeem their investments but is instead paid through a steady stream of interest payments.

AC is the country’s oldest conglomerate owning businesses such as Ayala Land, Inc.; Bank of the Philippine Islands; Globe Telecom, Inc.; Manila Water Co., Inc.; AC Energy and AC Industrial Technology Holdings, Inc.

In the first half of the year, the company’s attributable net income grew 135% to P37.84 billion, driven by the gains from its divestment in education and energy businesses.

AC shares gained P10.50 or 1.22% to close at P870.50 apiece on Tuesday. — Denise A. Valdez