Ayala Land readies refinancing for maturing obligations

TWIN OFFERINGS ALI’s existing regulatory approval for P50 billion in debt securities is already 90 percent utilized. —CONTRIBUTED PHOTO

Ayala Land Inc. (ALI) announced its plan to apply for a fresh three-year shelf registration of up to P50 billion worth of debt securities as it seeks to source more funds to finance its corporate requirements.

In a disclosure on Friday, the listed property developer said it was eyeing to raise up to P45 billion in debt.

The proceeds would “partially finance general corporate requirements and refinance maturing debt through the issuance of retail bonds or corporate notes for listing on the Philippine Dealing and Exchange Corp. (PDEx), or execution of bilateral term loans.”

These plans were approved by ALI’s board of directors during a regular meeting on Friday.

The plan to file a new bond approval with the Securities and Exchange Commission came after it had achieved a 90 percent utilization rate of its current P50-billion shelf registration.

In July, ALI listed its P33-billion fixed-rate bonds with the PDEx. The offering comprised bonds due 2024, 2027 and 2029.

It also issued P12-billion 6-year bonds in May.

Proceeds from the “twin offerings” are earmarked for the refinancing, funding general corporate requirements and capital expenditures for real estate projects.

In March, ALI said it was eyeing to deliver P100 billion worth of new inventory in the real estate market this year. It has spent about P44.7 billion as of end-September, the bulk or 55 percent of which were for residential projects.

In the first three quarters, ALI saw its net profits grow by 55 percent to P13.3 billion on higher property development revenues, reservation sales and commercial leasing income. Consolidated revenues increased by 19 percent to P86.3 billion for the period.

ALI launched eight new projects during the third quarter, bringing the total to 20 developments amounting to P60 billion.

“The demand for our residential products remained resilient and local consumption continues to be robust despite geopolitical and macroeconomic challenges. We believe the strength of our local market will provide the backbone to sustain the growth of our diversified real estate portfolio for the rest of the year,” ALI president and CEO Bernard Vincent Dy said previously.

On Nov. 18, ALI inaugurated the One Ayala Terminal, an intermodal facility that forms part of the EDSA Busway. It can serve up to 300,000 passengers per day.