Hogan Lovells advises International Finance Corporation on the first social bond issued in the healthcare sector in the Philippines

Singapore, 26 January 2022 – A Hogan Lovells team based in Singapore has advised International Finance Corporation (IFC) on its investment in AYC Finance Limited, a foreign subsidiary of Ayala Corporation (Ayala), through its subscription of a US$100 million 10-year social bond (Social Bond) issued by AYC Finance Limited and guaranteed by Ayala.

The proceeds of the Social Bond will support Ayala’s wholly owned subsidiary Ayala Healthcare Holdings, Inc. (AC Health) in re-financing the development of a new cancer hospital, in re-financing the expansion of the footprint of its network of primary care and multi-specialty clinics, and in accelerating its digital technology initiatives. The Social Bond, the first to be issued in the healthcare sector in the Philippines and the first to be issued by the Ayala Group, will support AC Health’s strategy to build an integrated health ecosystem designed to provide quality and affordable healthcare in the Philippines. The Social Bond is being issued under the new Ayala Health Social Bond Framework, which was developed with support from IFC and is internationally certified according to the International Capital Market Association’s Social Bond Principles, which guidelines  are designed to promote integrity in the social bond market. The investment also marks a catalytic step in the development of a real-sector social bond market in the Philippines.

The Hogan Lovells team was led by Singapore-based debt capital markets partner Andy Ferris with support from associate Felicia Chen. The team also included Samantha Campbell (partner, Singapore), Lim Xi (associate, Singapore), and Audrey Koh (paralegal, Singapore).

Commenting on the transaction, Andy said: "We are thankful for the opportunity to assist IFC on this first of its kind transaction in the Philippines. Social bond structures are designed to achieve positive outcomes, creating a platform for investors to achieve returns while simultaneously helping to address a range of social issues across a variety of sectors. Our congratulations go to the Ayala and IFC teams on this groundbreaking transaction".

For more information on how Hogan Lovells can support green, social and other ESG-linked bond issuance please get in touch with Andy Ferris or Felicia Chen.

About the Hogan Lovells DCM practice in Singapore

Our dedicated debt capital markets (DCM) practice consists of a team of experienced legal specialists with a deep understanding of the Asia Pacific DCM markets.

The team has vast experience in advising issuers, underwriters, and corporate service providers on complex, market-leading debt deals.

In partnership with our offices across our broader network in Asia and beyond, we advise our clients on the full life-cycle of DCM transactions, including in the areas of new issuance, liability management, distress and default, restructuring and insolvency, and corporate trust advisory. Clients trust us and have confidence in our dedication to solving problems effectively and efficiently.

In the area of new issuances, our practice covers the full range of domestic and international straight debt and structured bond transactions, including standalone issuances, debt programmes, equity-linked securities, bespoke private placements, and sustainable and impact financing. Our clients include major financial institutions and corporates looking to obtain funding from the capital markets and the underwriters, industry participants and service providers facilitating those debt raisings.

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