Ayala Land launches P15-B bond offer

MANILA, Philippines–Property giant Ayala Land Inc. launched on Monday its retail offering of up to P15 billion in long term fixed-rate bonds, the company’s largest fund-raising in the capital market so far.
The bonds will be issued in two tranches of seven and 10 years. The seven-year bonds were priced to yield 5.625 percent every year, while the 10-year bonds will yield 6 percent every year.

The offering consists of a principal amount of P10 billion with an option to upsize by P5 billion. The public offer will run from April 16 until 3:00 p.m. of April 23. Issue date for the bonds is scheduled on April 27.
This new offering exceeded ALI’s P10 billion issuance of 15-year notes last year, the longest tenor for a Philippine corporate institution. “This is in step with Ayala Land’s largest capital expenditure program to date of P37 billion, topping as well last year’s record of P30 billion. This positions Ayala Land to achieve stronger results in 2012, having closed yet another banner year in 2011,” Ayala Land treasurer Augusto Bengzon said in a press statement.

It was earlier reported that the interest rates will have a spread of 40-75 basis points over seven- and 10-year tenors on local benchmark PDST-R2. The bonds will be issued at face value. Investors can buy at least P50,000 while incremental investment will be in multiples of P10,000.

BPI Capital Corp. and The Hong Kong and Shanghai Banking Corporation Ltd. are joint lead managers and underwriters while BDO Capital and Investment Corp. and First Metro Investment Corp. are co-lead managers and underwriters for the offering.