Ayala Land aims to raise P6B via bond sale

Property giant Ayala Land Inc. (ALI) plans to venture into the local bond market next month with a retail offering of at least P6 billion worth of securities.

In an email reply to Inquirer’s query, ALI chief financial officer Augusto Bengzon said ALI intended to file with the Securities and Exchange Commission (SEC) this week an offer supplement for a two-year bond, with a base size of P6.5 billion.

“This will be taken from our shelf registration and we are looking at an offer period by mid-June,” Bengzon said.

Proceeds from the proposed bond offering will be used to refinance debt carrying higher coupon rates, he added.

ALI has an existing P50 billion worth of bond shelf registration cleared by the SEC in 2019. The unused portion amounts to P29 billion.

This fresh bond offering is in line with the pronouncement made by ALI during its stockholders meeting earlier this month about a new cash flow budget that seeks to pay a portion of outstanding debt obligations this year, bringing debts to 2019 levels or lower.