ALI to issue P500-M exchangeable bonds

Property giant Ayala Land Inc. will issue P500-million worth of exchangeable bonds through a public offering to fund operations.

In a disclosure to the Philippine Stock Exchange, ALI said the bonds will be priced at fixed value and will have a three-year maturity. The ratio and price of conversion were not disclosed.

ALI senior vice-president and chief finance officer Jaime Ysmael said proceeds from the offering will be used to fund general corporate expenses.

ALI said it had filed for registration of the bond issue with the Securities and Exchange Commission (SEC).

The property firm plans to initially issue P252-million worth of bonds after securing approval from the SEC.

BPI Capital Corp. will be the issue manager and underwriter for the planned bond issue.

ALI, which builds upscale malls, high-rise offices and residential developments, continues to pursue growth opportunities including new products and projects in new geographic areas and markets. When completed, these projects are expected to significantly augment the company’s recurring revenue stream.

The new projects include the develop-ment of the 200,000-square-meter North Triangle Commercial Center which is slated for completion by mid-2007; the expansion of Market! Market!; the Anvaya Cove in Morong Bataan, a residential and beach resort community; and new residential subdivisions to cater to the middle-income market.

ALI’s business process outsourcing offices PeopleSupport Center and Convergys will be operational within the year.

The company will also start development of its first real estate venture in Sta. Cruz, Manila in partnership with the Manila Jockey Club Inc.