Ayala Land files P50-B long term bond program for SEC registration
MANILA, Philippines -Property giant Ayala Land Inc. filed a new long-term bond program worth as much as P50 billion to strengthen its balance sheet amid plans to increase its expansion budget for 2023.
In a published notice over the weekend, Ayala Land said it filed a registration statement for the bonds with the Securities and Exchange Commission last March 13.
The developer said it it planned to raise P12.25 billion under the first tranche of the 2023 bond program. This could be upsized by another P5 billion, the notice showed.
It also plans to raise P4.75 billion to be included as the final trance under a previous bond program.
The board of Ayala Land approved the three-year self registration plan during a meeting last Nov. 25.
Ayala Land chief finance officer Augusto Bengzon said during an interview last month the company was preparing to raise up to P60 billion in debt issuances to stretch loan maturities and lower financing cost.
Ayala Land is preparing to aggressively expand despite the elevated inflation and high interest rate environment weighing on the 2023 outlook for the property sector.
During its quarterly briefing last month, company CEO Bernard Vincent O. Dy said they would boost capital spending by 17 percent to P85 billion this year.
The builder will allocate 39 percent of the budget to the residential sector, which was hit by a higher-than-expected rate of cancellations in 2023.
Ayala Land will also boost residential project launches by 19.5 percent to P110 billion. This could be upsized further to P130 billion in case of strong demand, Dy said.
The remaining capital spending budget will be allocated to land acquisition (23 percent), estate development (16 percent), malls (8 percent), offices (4 percent), hotels and resorts (3 percent) and other projects.
Ayala Land ended 2022 with profits of P18.6 billion, up 52 percent from the previous year.
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