Quantcast
Latest Stories

Ayala Land launches P2B in bonds

By

Property giant Ayala Land Inc. (ALI) has unveiled its sixth series of Homestarter bonds worth P2 billion, targeting retail investors who wish to set aside funds that may be used as full or partial downpayment for the purchase of an Ayala Land property.

The three-year instruments carry a coupon rate of 4 percent a year, double the current yield on comparable bonds. They are offered to retail investors for a minimum lump sum investment of P50,000 to as much as P5 million.

“We are very pleased to offer yet another series of the Homestarter bonds driven by a goal to give more people innovative options that could fast-track their purchase of an ALI property,” said Bobby Dy, ALI executive vice president and chief operating officer. “Since we issued the bonds,

it has generated close to P1 billion in total sales for ALI, which is a positive indication that people are encouraged to save through the program.”

The public offering has started and will run until May 24. ALI has mandated BPI Capital Corp., China Bank and PNB Capital as underwriters.

Bondholders will earn a bonus credit through the program—a special discount on the net selling price of various ALI properties should the bondholder decide to apply the principal amount and accrued interests,

net of taxes, as downpayment to buy an Ayala Land property.

Since the launch of the maiden Homestarter bonds in 2006, about P1 billion worth of bonds had been converted into residential purchases across all brands Ayala Land Premier, Alveo and Avida. Close to 50 percent of sales from the conversion were under the Alveo brand, 25 percent under Ayala Land Premier and a little less than 25 percent under Avida. “Amaia has also started to come in,” said Augusto Bengzon, ALI corporate treasurer.

As the company continued to innovate on the features of the Homestarter bonds, Bengzon said it also sought to reach as many individual investors throughout the country, which was why three underwriters were named instead of only BPI Capital. “We selected these underwriters as they have strong consumer banking units, which will be in a position to provide the appropriate housing loans and support the bondholders who decide to purchase an Ayala Land property,” Bengzon said.

Bengzon explained that the program would have a good fit with the consumer lending businesses of partner banks. Under a 5-95 program, he said that for every 5 percent of equity put up for home purchase, banks would be willing to finance the remaining 95 percent.

The net yield after tax from the new series of Homestarter bonds is 3.077 percent a year. Those who, for any reason, need to unload their bonds ahead of maturity, can choose to sell them over the counter with the help of the partner banks.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Ayala Land , Bonds and t-bills , homestarter bonds , property , Real Estate



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Enrile chief aide back in PH ‘to face charges’–report
  • Pakistan library named ‘bin Laden,’ as memory fades
  • US teacher fired over comment on black president
  • Magnitude-7.5 earthquake shakes Mexican capital
  • Title of new Hillary Clinton book: ‘Hard Choices’
  • Sports

  • Motivated LeBron James preps for postseason
  • Nadal ousted by Ferrer in Monte Carlo quarters
  • Pacquiao shorts in Bradley fight sold for P1.7M in LA auction
  • Ryu pitches Dodgers past Giants
  • Alonso sets the pace in Chinese GP practice
  • Lifestyle

  • Levine designs womenswear with help from fiancee
  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • Entertainment

  • Myx TV premieres Asian American ‘docu-series’
  • A nutty finale for ‘Scandal,’ TV’s craziest show
  • EXO postpones release of mini album ‘Overdose’
  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Business

  • US commerce secretary spells out economic facet of ‘pivot to Asia’
  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Multicultural flock marks Good Friday in San Francisco
  • Las Vegas ‘Pinoy Pride’ fest hails Filipino heritage
  • Marking Jesus’ journey on Good Friday
  • Filipina accomplice arrested for fake bills in Malaysia
  • DoH denies Filipino nurse no longer positive for MERS virus
  • Marketplace