Gov't awards LRT1 Cavite Extension project to Ayala-Metro Pacific group

The Department of Transportation and Communications (DOTC) has awarded the LRT1 Cavite Extension Project to the joint venture of the Ayala and Metro Pacific groups.

In a text message, DOTC spokesperson Michael Arthur Sagcal said the Light Rail Manila Consortium "has 20 days to comply with post-award requirements, after which the concession agreement can be signed by both parties."

Sagcal didn't provide details, especially pertaining to how the agency sidestepped a stay order that the Supreme Court issued at the behest of SM Prime Holdings Inc.

Light Rail Manila is the joint venture between AC Infrastructure Holdings and Metro Pacific Investments Corp (MPIC) that was the lone bidder for the P64.9 billion project, which is one of the public-private partnership (PPP) ventures of the Aquino administration.

The consortium, which offered a P9.35 billion premium over the contract price, had bagged the endorsement of the boards of the National Economic and Development Authority (NEDA) and of the Light Rail Transit Authority (LRTA).

SM Prime however had thrown a monkey wrench into the project, after it secured a temporary restraining order from the Supreme Court, which halted the award based on the Henry Sy-led mall developer's claim that the project would violate a 2008 contract with state-run LRTA.

Under the said contract, SM Prime paid LRTA P200 million for the right to name the common station for the LRT1 and MRT3, and to locate the facility near the SM City North Edsa mall.

The design of the common station was tucked into the LRT1 Cavite Extension Project, which also provided that the location be moved near the Trinoma mall of Ayala Land Inc. DOTC had said its decision to move the location would save the government billions in pesos.

Before today's announcement of the award, DOTC had sought the legal opinion of the Office of the Solicitor General and was looking at a loophole in the High Tribunal's stay order to expedite the project.

The southbound extension of LRT1 would increase the train’s span from 20.7 kilometers to 32.4, with approximately 10.5 kilometers of the extension elevated and 1.2 kilometers at grade.

More than 500,000 commuters everyday use LRT1, which runs from Baclaran in Pasay City to Roosevelt in Quezon City. The southern part of Metro Manila and neighboring Cavite province is home to nearly 4 million people.

- Interaksyon

Aboitiz-Ayala tandem tops bidding for Cavite-Laguna Expressway Project

The joint venture of Ayala Corp and Aboitiz Equity Ventures has topped the bidding for the P34.5 billion Cavite-Laguna Expressway (CALAX) Project.

During the opening of bids held today at the Department of Public Works and Highways (DPWH), Team Orion submitted the highest bid of P11.65 billion.

Team Orion's bid narrowly beat the P11.33-billion offer of MPCALA Holdings, a unit of Metro Pacific Investments Corp (MPIC). MTD Capital Berhad, the Malaysian group that built the Skyway, submitted an offer of P922 million.

Only three groups participated in the bidding after the DPWH disqualified Optimal Infrastructure Development Inc (OIDI), a unit of San Miguel Corp, because of a defective bid security.

Optimal Infrastructure would have won the bid after authorized representative Raoul Eduardo C. Romulo said it offered P20.105 billion for the project.

San Miguel had said its disqualification would come at the expense of the public, citing its aggressive bids, such as the P11-billion for the NAIA Expressway Project, which the company bagged. The conglomerate yesterday said it may seek court redress.

MPCALA had written DPWH to point out that OIDI didn't comply with bidding rules, alleging that the bid security had an invalid period and that the proposal was "not properly packaged, sealed and labeled."

The P35.4-billion CALAX involves the financing, design, construction, operation and maintenance of a four-lane, 47-kilometer closed-system toll expressway connecting the Cavite Expressway (CAVITEX) and the Southern Luzon Expressway (SLEX).

- Interaksyon

P35.4B Cavite-Laguna Expressway gets four bids, says DPWH

Four groups on Monday made a bid for the P35.4 billion Cavite-Laguna Expressway project, a public-private partnership initiative of the Department of Public Works and Highways (DPWH).

According to the DPWH, the investors vying for the PPP project are Alloy MTD Philippines of Malaysia, Team “Orion” of Ayala Corp. and Aboitiz Group, MPCALA Holdings Inc. of Metro Pacific Investments Corp., and Optimal Infrastructure Development Inc. of San Miguel Corp.

The department will issue a for the submission and opening date of the financial offer by bidders that will pass the technical hurdle, DPWH Secretary Rogelio Singson told the representatives of the investors. "We hope to complete the process by Friday," he said.

At this point, the Special Bids and Awards Committee and the Technical Working Group will review the legal and technical proposals of the participants and see how well they have met the requirements, DPWH Undersecretary Rafael Yabut said.
The project involves financing, design, construction, operation and maintenance of a four-lane, 47-kilometer tollway linking South Luzon Expressway and Manila-Cavite Tollroad Expressway.

- GMA News

Ayala unit raises $300M from bond sale

A unit of Ayala Corp (AC) has completed the sale of bonds that can be exchanged for shares in the conglomerate's property arm.

In a disclosure to the Philippine Stock Exchange, AC said AYC Finance Ltd listed the $300 million worth of bonds due 2019 in the Singapore Exchange on Monday.

The bonds, carrying an interest rate of 0.5 percent per year, will be exchangeable to common shares of Ayala Land Inc (ALI) at P36.48 per share starting June 11 until the tenth day prior to its May 2, 2019 maturity date.

The issuance will not result in a dilution of ownership in ALI because the shares to be exchanged will come from the conglomerate's stake in the real estate firm.

AC’s holdings in the property company will fall to 46.5 percent from 49 percent if all bondholders will exchange their debt for shares in ALI.

The offering is the first equity-linked international issuance by a Philippine issuer in the past two years. It has also achieved the lowest cost of financing across Asia ex-Japan in 2014.

The Ayala group intends to use proceeds from the issuance for general corporate purposes and investments, particularly those at the parent level.

AC's consolidated net income jumped 22 percent to P12.8 billion last year, faster than the 14 percent expansion to P10.50 billion in 2012, on the strength of its real estate and banking businesses.

AC also has interests in Bank of the Philippine Islands, Globe Telecom, Manila Water, Integrated Micro-Electronics Inc, and business process outsourcing firm LiveIt.

- Interaksyon

Ayala raises $300 million from equity-linked bond sale

MANILA – Ayala Corporation (AC) has raised $300 million from the issuance of bonds that can be exchanged for shares in the conglomerate's real estate arm.

In a disclosure to the Philippine Stock Exchange, the Philippines' oldest conglomerate said its wholly owned unit AYC Finance Limited issued the bonds, carrying an interest rate of 0.5 percent per year, exchangeable to common shares of Ayala Land Inc (ALI) at P36.48 per share, a premium of 20 percent over its closing price on Thursday.

The offering was 2.5 times oversubscribed, AC president Fernando Zobel de Ayala said during the conglomerate's stockholders' meeting.

ALI shares fell following the Ayala group’s disclosure but AC chief financial officer Delfin Gonzalez clarified the issuance will not result in a dilution of ownership in the property firm because the shares to be exchanged will come from the conglomerate's stake in the real estate firm.

AC’s holdings in the property company will fall to 46.5 percent from 49 percent if all bondholders will exchange their debt for shares in ALI.

In explaining why AC opted to link the offering to its real estate business, Gonzalez said: "We decided not to use Ayala Corp because the Ayala Corp share price has a conglomerate's discount to net asset value. We decided to use Ayala Land because Ayala Land comprises the largest proportion of the value of Ayala Corp."

The offering is the first equity-linked international issuance by a Philippine issuer in the past two years. It has also achieved the lowest cost of financing across Asia ex-Japan in 2014.

"This offering is important as it enables us to continue the pursuit of investment opportunities in new growth areas and the realignment of Ayala Corporation’s portfolio mix to further optimize shareholder returns. Ayala Land remains an important and integral part of Ayala Corporation. It is a significant growth driver of the Ayala group and we continue to share synergies as we work on targeted projects particularly in energy and transport infrastructure,” AC chairman Jaime Augusto Zobel de Ayala said in a statement.

The Ayala group intends to use proceeds from the issuance for general corporate purposes and investments, particularly those at the parent level.

The offering is expected to close on or about May 2. The bonds will be exchangeable starting June 11 until the tenth day prior to its May 2, 2019 maturity date.

Starting May 2, 2017, bondholders will have the right to require the company to buy back their debt for cash at a price equal to 100 percent of the principal amount of the bonds. On the same date, AC can call the bonds if the closing price of ALI shares for any 30 consecutive trading days is at least 130 percent of the exchange price.

Goldman Sachs International acted as the sole international bookrunner of the offering and BPI Capital acted as sole domestic lead manager.

Source: Interaksyon