Ayala Land Inc. raises P8 billion from fixed rate bonds

MANILA, Philippines — Ayala Land Inc. (ALI) successfully raised P8 billion from the issuance of five-year fixed rate bonds.

The bonds, which were listed at the Philippine Dealing & Exchange Corp. (PDex) yesterday, represented the last tranche of ALI’s three-year debt securities program amounting to P50 billion. They have a coupon rate of 7.0239 percent with a 2023 maturity.

Proceeds will be used to finance the company’s 2018 capital expenditures and for other general corporate requirements.

Joint lead underwriters and joint book runners were BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., PNB Capita and Investment Corp. and Standard Chartered Bank.

The bond issue secured the top credit rating from local credit watcher Philippine Rating Services Corp.  It was also assigned a stable outlook.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. This means the issuer’s capacity to meet its financial commitment on the obligation is extremely strong.

A stable outlook is assigned when a rating is likely to be maintained or to remain unchanged in the next 12 months.

ALI posted net income of P13.5 billion in the first half, 18 percent higher than the P11.5 billion reported in the same period last year.

The company expects to sustain its strong performance for the rest of the year.