ALI raises P15 billion bonds

MANILA, Philippines — Ayala Land Inc. (ALI) has beefed up its war chest after successfully raising P15 billion in fixed rate bonds due 2028 and 2023.

The net proceeds of the offering will be used to partially fund ALI’s capital expenditures and refinance short-term borrowings for the year.

The move is in line with its thrust to fortify its balance sheet and execute its recovery and growth plans, said ALI CFO, treasurer and chief compliance officer Augusto Bengzon.

The bonds, which were listed at the Philippine Dealing and Exchange (PDEX) totaled P10.1 billion for the 2028 bonds and P4.9 billion for the 2033 bonds.

The 2028 bonds have a coupon rate of 6.0253 percent per annum (p.a.), while the bonds due in 2033 have a coupon rate of 6.2948 percent p.a.

The latest fund-raising marks the company’s second largest bond issuance, Bengzon said.

“In the past three years, Ayala Land has proven its resilience, demonstrated that it is on a path to recovery, and is now in a solid position for renewed growth,” he said.

Securities and Exchange Commission chairman Emilio Aquino, in his message, said that ALI has established its mark in the Philippines as one of the largest and most diversified real estate conglomerates and is engaged in a wide array of activities such as the development of sustainable estates, industrial estates, condominiums both for residential and office spaces, house and lots, commercial lots, shopping and working spaces, hotels and resorts, and warehouses and factory buildings.

“This extensive background of Ayala Land in the real estate industry is aligned with the Build Better More program of the 10-point agenda for economic renewal and long-term growth of the national government,” Aquino said.

Philippine Dealing and Exchange Corp. president and CEO Antonio Nakpil cited the listing as an example that can be emulated by other firms already moving up to the next level of funding via bond issuances, whether public or through institutional buyers.