Ayala Land homestarter bonds rated ‘AAA’

A bond issue of real estate giant Ayala Land Inc. on Thursday received the highest credit rating from a local debt watcher, which said the property developer’s strong financial performance made the securities attractive investment options.

In a statement, Credit Rating and Investors Services Philippines Inc. (Crisp) said it had assigned an ‘AAA’ rating on ALI with a stable outlook.

ALI is currently offering a three-year, fixed rate “Ayala Land Homestarter Bond” worth P3 billion, with the first tranche of P1 billion issued on October 31.

“ALI’s market position is supported by its well-known flagship projects that include the development of Makati as the country’s premier commercial and business district,” the ratings firm said.

It added that the property arm of the Ayala conglomerate held market leadership in a competitive real property development sector, which was marked by its dominance in the development of high-end subdivision lots and residential buildings.

Of late, ALI has also successfully established an overall market presence that now extends to the middle-income and affordable housing segments, the ratings firm added.

“Crisp assigns a stable credit outlook for ALI’s issuer rating as [we] continue to believe that [the firm’s] strong financial performance will continue and roll-out of its new development projects will sustain its leadership position,” it added.

The bond issue was recently approved by the Securities and Exchange Commission for a total offer size of P3 billion. The bonds give holders the option to build up seed money to buy an Ayala-developed residential unit.

The bonds will carry a fixed interest rate of 5 percent per year and mature in three years.

Eligible investors, whether Filipino citizens or resident foreign individuals, may buy a minimum of P50,000 and in multiples of P10,000 thereafter. The maximum investment is P5 million.