Ayala Land starts sale of 10-year retail bonds
Offering until July 25 seeks to raise P15B
More News from Philippine Daily Inquirer
PROPERTY giant Ayala Land Inc. launched Friday a public offering of 10-year retail bonds carrying a coupon rate of 5 percent a year.
ALI plans to raise P15 billion from the offering, its biggest debt issuance for a single tenor to date, the property firm told the Philippine Stock Exchange.
The public offering will run until July 25. The bonds will be traded in the secondary market with an expected listing on the local fixed-income platform on July 30.
The offering size includes an additional P5 billion in overallotment due to strong investor demand, ALI said.
Proceeds from the offering are expected to be used for ALI’s capital expenditure program which, in turn, is anchored on an aggressive growth plan.
ALI has mandated BPI Capital Corp., BDO Capital and Investment Corp., China Banking Corp., ING Bank and Standard Chartered Bank as joint lead underwriters and bookrunners for the offering. First Metro Investment Corp. and Deutsche Bank are co-lead underwriters while BPI Capital is the sole issue manager.
The property giant has budgeted P65.7 billion for capital spending this year. Of the amount, P10.3 billion had been disbursed in the first quarter for residential development, land acquisition, shopping centers, hotels and resorts, office property development and other land development activities.
In May, ALI raised about $300 million from a fresh equity deal, taking advantage of the buoyant stock market to boost funds for expansion.
In the first quarter, ALI grew its net profit by 30 percent year-on-year to P2.76 billion, as all business lines contributed higher earnings.
Consolidated revenue in the first quarter reached P18.53 billion, 38 percent higher than the P13.39 billion posted in the same period last year.
Last May, ALI 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.
ALI issued the bonds, it has generated close to P1 billion in total sales, a positive indication that people are encouraged to save through the program, the company said.
Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.
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