ALI issues additional P7 B bonds

MANILA, Philippines - Property giant Ayala Land Inc. is issuing an additional P7 billion worth of bonds.

The issuance forms part of ALI’s three year debt securities program of up to P50 billion.

Local credit watchdog Philippine Rating Services Corp. assigned a PRS Aaa rating to the proposed P7 billion bond issuance.  

Just last month, ALI issued P8 billion in bonds which  were similarly rated PRS Aaa, with a stable outlook, by PhilRatings.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. PRS Aaa is the highest rating assigned by PhilRatings.

On the other hand, an outlook is an indication as to the possible direction of any rating change within a one year period and serves as a further refinement to the assigned credit rating for the guidance of investors, regulators, and the general public. 

A stable outlook is defined as: “The rating is likely to be maintained or to remain unchanged in the next 12 months.”

In arriving at the rating, PhilRatings took into account ALI’s continuously growing profitability, sound capitalization, well diversified portfolio with a sizable and strategic landbank for future expansion, and sustained healthy outlook for the real estate industry.  

Owned by the Ayala family, ALI is primarily involved in the development of large scale, integrated mixed use estates, Business Process Outsourcing (BPO) office buildings,  shopping centers,and hotels. 

As of the end of 2015, the company had a substantial land bank of 8,948 hectares, located in 55 centers throughout the country.

ALI saw its profit grow 18 percent to P20.9 billion last year as revenues expanded  12.6 percent to P107.2 billion.

Real estate sales grew 13.4 percent while the leasing and hotels and resorts businesses improved by 15.6 percent  and 9.6 percent, respectively.

The Ayala-led property developer has programmed a capital budget of P85 billion this year, higher than the P82.2 billion spent in 2015.

It is eyeing a net income of P40 billion by 2020 through the continued expansion in the residential sector while beefing up its recurring income business.