Ayala Land raising P25B to help fund 2018 capex
Property giant Ayala Land Inc. (ALI) has secured board approval to raise up to P25 billion from a mix of retail bond, corporate notes and bilateral loan deals as it prepares to fund record-high capital spending this year.
In a disclosure to the Philippine Stock Exchange yesterday, ALI said its board had approved a P20-billion fund-raising through the issuance of retail bonds to be listed on the Philippine Dealing and Exchange Corp. and bilateral term loans.
Proceeds from these borrowings will be used to partially finance general corporate requirements, the company said in the disclosure.
The retail bonds, on the other hand, will be issued under the P50-billion debt securities program approved by the Securities and Exchange Commission in March 2016.
Separately, the board also approved the issuance of up to P5 billion worth of debt paper with a tenor of up to five years to eligible institutions. Proceeds will be used to refinance short-term loans.
ALI has earmarked a record-high P111-billion capital spending this year, supporting the rollout of more real estate products as robust macroeconomic fundamentals are seen to keep the domestic property market buoyant in the years ahead.
This year, ALI plans to bring to the property market P125 billion worth of new real estate inventory, mostly residential units. This will be 41 percent higher than the product launches last year.
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