Ayala Land to borrow P19B via bond issue

The Zobel family’s Ayala Land Inc. firmed up details for a P19-billion bond sale that will be launched this week.

Based on deal prospects dated June 8, the property giant also finalized the pricing for the debt offer, with its Series A five-year notes paying 6.0253 percent per annum and Series B 10-year notes paying 6.2948 percent per annum.

The offer period will run from June 13 through June 19, 2023. The bonds will be listed on the Philippine Dealing & Exchange Corp. on June 26.

Based on the prospectus, the minimum purchase amount is P50,000 while excess amounts will be in multiples of P10,000.

Ayala Land said the base offer will amount to P14 billion plus an oversubscription option for another P5 billion.

The developer is raising money to bankroll expansion plans and to lower borrowing costs.

It said P10.4 billion will be used to partly finance capital expenditures while P8.37 billion will be used to partially refinance short-term loans used to pay for the early redemption of its bonds issued in 2018.

Underwriting team

Ayala Land hired BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. as joint lead underwriters and bookrunners.

The debt sale will mainly come from the developer’s newly-registered P50 billion debt program.

Ayala Land earlier said it would raise capital expenditures in 2023 by 17 percent to P85 billion.

It will allocate about 39 percent of the budget for residential projects.

The remaining amount will be spent on land acquisition (23 percent), estate development (16 percent), malls (8 percent), offices (4 percent), hotels and resorts (3 percent) and other projects.

During the first quarter of 2023, Ayala Land said net income jumped by 42 percent to P4.5 billion while total revenues climbed 26 percent to P30.9 billion. INQ