C00296-2017

SECURITIES AND EXCHANGE COMMISSIONSEC FORM 17-C

CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER

1. Date of Report (Date of earliest event reported)
Jan 20, 2017
2. SEC Identification Number
34218
3. BIR Tax Identification No.
000-153-610-000
4. Exact name of issuer as specified in its charter
AYALA CORPORATION
5. Province, country or other jurisdiction of incorporation
PHILIPPINES
6. Industry Classification Code(SEC Use Only)
7. Address of principal office
32F to 35F , Tower One and Exchange Plaza, Ayala Triangle, Ayala Avenue, Makati City Postal Code 1226
8. Issuer's telephone number, including area code
(02)908-3000
9. Former name or former address, if changed since last report
N/A
10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA
Title of Each Class Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common Shares 620,726,154
Preferred B Series 1 Shares 20,000,000
Preferred B Series 2 Shares 27,000,000
Voting Preferred Shares 200,000,000
11. Indicate the item numbers reported herein
Item 9

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Ayala CorporationAC

PSE Disclosure Form 4-13 - Clarification of News Reports References: SRC Rule 17 (SEC Form 17-C) and
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Clarification of News Articles: “AC Energy eyes P7.489-billion RE investment deal in Indonesia” and “Ayala group sets aside up to 180-B capex for 2017”
Source Business Mirror (Internet Edition) and Manila Times (Internet Edition)
Subject of News Report “AC Energy eyes P7.489-billion RE investment deal in Indonesia” and “Ayala group sets aside up to 180-B capex for 2017”
Date of Publication Jan 20, 2017
Clarification of News Report

This refers to your request to clarify the following news articles:

1. “AC Energy eyes P7.489-billion RE investment deal in Indonesia” posted in Business Mirror (Internet Edition) on January 19, 2017, which reported in part that:

“AC Energy Holdings Inc. is expected to seal in the very near future another investment deal involving renewable energy (RE).

The power arm of Ayala Corp., AC Energy President John Eric Francia said, is currently working on another acquisition that would be finalized in the next few weeks.

‘We are in the middle of discussions. We can’t disclose it because it’s not final yet, but we’re in the midst of a final transaction,’ he said.

Without mentioning firm details, Francia said the deal still involves RE. ‘We are building up our RE platform so we’re looking for acquisitions in the Philippines.’

Francia said the company is still on active lookout for potential acquisitions.

‘It’s not hydro, but basically, we’re looking to further scale in renewables. We’re getting traction in Indonesia, but we’d like to scale up more in the Philippines so we’re going to do more RE development here in the Philippines,’ he said.

. . . .”
We confirm that we are in active discussions and in the process of finalizing a renewable energy investment in the Philippines. We will make the appropriate disclosure upon closing of the transaction.

2. “Ayala group sets aside up to 180-B capex for 2017” posted in Manila Times (Internet Edition) on January 20, 2017, which reported in part that:

“THE Ayala group is programming capital expenditure (capex) about P160 billion to P180 billion for this year in a bid to expand its power, infrastructure, industrial or manufacturing, healthcare, and education businesses.

Paolo Maximo F. Borromeo, Ayala Corporation’s (AC) head of corporate strategy and development, said this year’s capex budget is ‘relatively the same’ as last year’s P174 billion.

. . . .

Borromeo said the 2017 capex will be funded by internally generated cash flow and debt, partly through its three-year P20-billion bond offering under shelf registration.

He said Ayala will proceed with its P10 billion bond issue sometime in February this year. The company issued the first tranche of P10 billion worth of bonds last year, due in July 2023.

. . . .

5 focus sectors

Borromeo said the group will mainly invest in five focus areas in the next few years — power, infrastructure, industrial or manufacturing, healthcare, and education.

‘We’re intensive in power and infrastructure, especially power because we just invested in Indonesia. For AC Industrials, we have manufacturing and automotive partnerships. So that’s power, infrastructure, health and education — the five focus areas in the next few years,’ Borromeo said.

. . . .

Borromeo said the group is currently in talks for potential partnership or investment opportunities overseas in the power, semiconductor and water business segments, although he declined to give details.

. . . .”

We wish to clarify that the stated amounts in the abovementioned news article are only indicative numbers. Ayala will make the appropriate disclosure on its capital expenditure plans for the year once finalized. We confirm the rest of the abovementioned news article.
Other Relevant Information

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Filed on behalf by:
Name Paolo Borromeo
Designation Head, Corporate Strategy and Development Group