ALI seen raising P6B via retail bond offering

Property giant Ayala Land Inc. on Monday rolled out a new domestic retail bond offering worth P6 billion, raising fresh funds for its continued expansion.

In a disclosure to the Philippine Stock Exchange, ALI said it was offering P4 billion worth of bonds due in 2020 and another P2 billion worth of bonds due in 2033 at respective interest rates of 4.625 percent and 6 percent a year.

The bonds falling due in 2033 represent the longest tenor for a domestic corporate bond issue to date, it said in the disclosure.

The public offer which started Monday will run until Oct. 4.  The property firm intends to issue and list the bonds on the Philippine Dealing & Exchange Corp. on Oct. 10.

ALI has mandated BPI Capital Corp., BDO Capital & Investment Corp. and First Metro Investment Corp. as joint lead underwriters and bookrunners for the bond offering.

ALI grew its six-month net profit by 30 percent year-on-year to P5.62 billion as it unlocked higher earnings from property development, commercial leasing and construction businesses. The company booked P36.63 billion in consolidated revenue for the first semester, up 36 percent year-on-year.

Revenue from the residential segment contributed P18.4 billion, 28 percent higher than the year-ago level, which ALI attributed to strong bookings across all residential brands.

As an indicator of future earnings growth of its residential business, ALI’s sales take-up value for the first six months reached P43.79 billion, equivalent to an average monthly sales of P7.3 billion, an all-time high.

ALI’s four residential brands launched 10,130 units in the first six months for a total of about P30.64 billion.