Ayala Corp. secures $200 million yen loan

Ayala Corp., a major Philippine conglomerate, has obtained its first loan in Japanese yen by partnering with two banks, Mizuho Bank Ltd. and Sumitomo Mitsui Banking Corp. The loan is valued at $200 million and was announced on Thursday. This move is part of Ayala's strategy to expand its business as it approaches its 200th anniversary in 2034. Ayala's treasurer, Estelito Biacora, mentioned that this yen loan broadens the company’s relationship with Japanese financial institutions. He noted that it enhances their options for raising capital, which is vital for their growth. The company received an "A-" rating from the Japan Credit Rating Agency, allowing them to access loans at more favorable rates. The yen loan is considered cheaper given Japan's low interest rates, which result from its sluggish economic growth and low inflation. This makes it an attractive option for companies looking to borrow money at a lower cost. Ayala is also focusing on succession planning, with several members of the Zobel family being promoted to key positions. They will oversee various sectors, including real estate and sustainability, as part of the company's growth strategy. In 2024, Ayala reported its highest-ever net income of P42 billion, a rise of 10% from the previous year. The company is also planning to raise up to P20 billion from a preferred share sale, which will start with a base of P10 billion and could increase based on demand.