ALI to issue P15-B bonds

MANILA, Philippines - Ayala Land Inc. (ALI) said it plans to issue up to P15 billion worth of bonds to bankroll its massive expansion aimed at further widening its presence nationwide.

In a briefing late Wednesday, ALI president Antonino T. Aquino said the company will tap the bond market to take advantage of the prevailing low interest rate environment.

ALI chief finance officer Jaime Ysmael said the bonds, which will have a maturity of seven and/or 10 years, will be issued in the first half this year.

The company has set a record P37 billion capital spending program this year, 23.3 percent more than what it spent in 2011. Bulk of spending or 56 percent will go to residential projects; 13 percent to shopping centers, four percent office buildings, 12 percent to hotels and the balance of 15 percent for the acquisition of new properties.

For this year, ALI plans to launch 24,800 units across all its major residential brands (Ayala Premier, Avida, Aveo, Amaia), signicantly higher than the 20,613 units rolled out in 2011.

ALI is currently building its first four businessman’s hotels under the Kukun brand in Bonifacio Global City, Cagayan de Oro, Davao and Nuvali in Laguna. The first two hotels are slated to open this year.