MANILA, Philippines - Property giant Ayala Land Inc. (ALI) is set to raise as much as P15 billion through the bond market.
The Securities and Exchange Commission (SEC) has approved ALI’s registration for the issuance of P15 billion worth of bonds, SEC commissioner Ma. Juanita E. Cueto said in a text message yesterday.
The property arm of the Ayala conglomerate secured in February the board approval to issue up to P15 billion worth of bonds to be sold in a general public offering. The bonds that will mature in 2025 will partially fund capital expenditures this year.
Philippine Rating Services Corp. earlier gave ALI the highest credit score for its planned P15-billion bond sale. ALI hired BPI Capital, First Metro Investment Corp., PNB Capital, Chinabank, HSBC and Deutsche Bank as underwriters.
ALI will spend P70 billion this year, up from P66.26 billion in 2013, to complete ongoing developments and new launches to help sustain the growth trajectory in the coming years. It also plans to launch 78 projects this year with an estimated value of P142 billion.
ALI vice president and treasurer Augusto Cesar D. Bengzon said the company will raise an initial P8 billion from the first tranche of bond offering.
The property firm will also issue another P3 billion worth of Homestarter bonds.
Bondholders, who are notified of newly launched projects of the property giant, may select an ALI-developed property and use the savings as downpayment. Investors will enjoy discounts depending on the amount of investment and the purchase price of ALI residential units.
In 2013, ALI spent P66 billion for its various projects, backed by a P12.2-billion overnight share sale in March, a P15-billion bond sale in August and a P6-billion bond offering in October.
ALI is primarily into the development of residential projects, lease of commercial and office space and sale of prime lots. The company is also beefing up its recurring income portfolio through new hotels, convenience stores, department stores, supermarkets and hospitals.
Last year, profits of the property developer surged 30 percent to a record P11.74 billion from P9.04 billion in 2012. Consolidated revenues jumped 36 percent to P81.52 billion, driven by revenues from real estate amid the strong performance across the property development, commercial leasing and services business lines.