AYALA Corp., the Philippines’ oldest conglomerate, has approved the early redemption of P6 billion bonds that were issued in 2007.

In a filing to the Philippine Stock Exchange on Wednesday, Ayala’s executive committee said the 6.825-percent bonds will be redeemed on November 22.

Bondholders will be paid in cash at 100 percent of the issue price, plus accrued and unpaid interest. The company will also pay bondholders an early redemption penalty of 0.5 percent. The bonds were originally expected to mature in 2012.

The company has about P43.18 billion worth of long-term debts as of the first half of 2011. It ended the first half with about P30 billion in cash and a net debt-to-equity ratio of 0.17 to 1. Ayala Corp. raised P10 billion from the issuance of multiple put bonds in May and subsequently redeemed P5.8 billion worth of preferred B shares in July.

The conglomerate earlier reported that net income in the six months to June rose 12 percent to P4.9 billion.

Ayala Corp. is involved in real estate development, banking, water, infrastructure and telecommunications through Ayala Land Inc., Bank of the Philippine Islands, Manila Water Co. Inc. and Globe Telecom. It also owns electronics maker Integrated Microelectronics Inc. and is present in the business process outsourcing sector through LiveIt.  

The company recently made inroads in the power sector as it gears up to build a portfolio of power-generating assets when it closed a joint-venture agreement with Trans-Asia Oil and Energy Development Corp. for the construction and operation of a 135-megawall thermal plant in Calaca, Batangas.

Shares of the company added 0.86 percent to P280 each on Wednesday’s close.