Based on a prospectus dated September 7 submitted to the Securities and Exchange Commission, ALI plans to issue as much as P3 billion of these bonds in one or more tranches. The targeted issue date for the first tranche is October 26 while the second tranche is proposed to be issued one year after.
This will be the fifth series of these innovative “Homestarter” bond instruments and the largest since the first series was launched in 2006. The underwriters are BPI Capital Corp., China Banking Corp., PNB Capital & Investment Corp. and RCBC Capital Corp.
The bonds will be sold through a general public offering to retail investors subject to the registration requirements of the SEC. They will be in scripless form and offered to Filipino individuals or resident foreign individuals in denominations of P50,000 each as minimum and in multiples of P10,000 thereafter.
Based on the prospectus, the bondholder may opt to apply the sum of the principal amount of the bonds plus accrued interest net of applicable withholding taxes to the full or partial downpayment of a subdivision lot, house and lot or condominium unit developed by various brands under the Ayala group.
ALI intends to list the Homestarter bonds, which will be priced at 100 percent of face value, at the local bond exchange platform Philippine Dealing & Exchange Corp.
The Homestarter bonds also aim to make Ayala-branded properties more accessible to mid-income families.