Thursday, November 15, 2012

Ayala Corp. (AC) Bond Issued (7 years)

Ayala Corp. (AC) has issued a 7-year bond at 7.45% interest. 7.45% is relatively low; e.g. SMC Series 2A Preferred shares issued this year were 7.5% for 5 years.  However, considering how low the government bonds are right now, some may also favor this deal from AC.


Would I lend AC money? No. Even though AC is a good company, this is not for me. Maybe if I have millions of parked money, but for a small time investor like me, this is not the place where I put my money into. Note that taxes and fees are still excluded in 7.45%, not sure what is the net after this, maybe ~5+%.

If you are interested, the offer will be available from BPI, BDO, First Metro (investment arm of Metrobank), HSBC., ING Bank Manila, RCBC, SB Capital Investment Corp., and Standard Chartered Bank.

1 comment:

  1. SMC bonds have higher rate because SMC has a higher risk than AC. SMC is diversifying using debt, and the businesses they're entering are new to them; on the other hand AC sticks to its core business -- stable and proven income stream.
    in finance, higher risk = higher retuns.

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