ALI’s 5-year bond offer gets high rate

Property giant Ayala Land Inc. has obtained a sterling credit rating for its new five-year bond offering worth of up P8 billion.

Local credit watchdog Philippine Rating Services Corp. (PhilRatings) assigned an issue credit rating of “PRS Aaa” with a “stable” outlook for the proposed bond offering.

Debt paper rated PRS Aaa, the highest rating in Philratings’ scale is deemed of the “highest quality with minimal credit risk” and the borrower’s capacity to meet its financial commitment on the obligation is deemed extremely strong.

The issuance is part of ALI’s three-year debt securities program of up to P50 billion. To date, ALI has already issued a total of P42 billion in relation to this program and proposed issuance represents the balance.

Proceeds from the proposed bond issuance will be used mainly to partially finance the construction of the following projects: Seda Hotels Bay Area in Parañaque, Ayala Malls Capitol Central in Bacolod, the Cebu Central Bloc mixed-use complex, the expansion of Seda Hotels BGC, leasing projects in Arca South and the Taguig Integrated Terminal Exchange, Bacolod Capitol Corporate Center in Capitol Central and the Vertis North Corporate Center Tower 3.

In a statement, Philratings said the PRS Aaa rating for ALI took the following key considerations: 1) a well-diversified portfolio with a sizable and strategic landbank for future expansion, complemented by solid brand equity and a highly-experienced management team; (2) sustained healthy outlook for the economy and real estate industry; (3) continuously growing profitability, coupled with healthy cash flow generation and high cash reserves, and (4) sound capitalization, with a manageable debt level and mix.

With 10,285 hectares of developable area in its land bank as of end 2017, ALI has 25 estates across the Philippines and presence in 55 identified growth centers in the country. —DORIS DUMLAO-ABADILLA