Ayala Land Inc. is preparing to issue another round of its pioneering Homestarter Bonds worth P3 billion and a third tranche of its fixed rate bond series worth P7 billion. STAR/File photo
MANILA, Philippines – Ayala Land Inc. is preparing to issue another round of its pioneering Homestarter Bonds worth P3 billion and a third tranche of its fixed rate bond series worth P7 billion.
In a disclosure to the Philippine Stock Exchange (PSE) yesterday, ALI said its board of directors approved the terms and conditions for the combined P10 billion new issuances yesterday.
Both issuances would be under the company’s P50 billion debt securities program as approved by the SEC in March.
The Homestarter Bonds, a concept pioneered by ALI, enables bondholders to build up full or partial downpayment to buy a residential unit in the future.
The coupon rate may be 3.5 percent to four percent, same as in previous rounds of Homestarter Bonds, officials earlier said.
ALI first launched the innovative instrument in 2006, making it the first property company to issue such types of bonds.
Business ( Article MRec ), pagematch: 1, sectionmatch: 1
It has been issuing the bonds regularly, saying that it has been an effective savings instrument for many bondholders.
In the past, eligible investors including the targeted retail investors could buy a minimum of P50,000 worth of the bonds and in multiples of P5,000 or P10,000 thereafter.
ALI has an approved shelf registration for up to P50 billion.
A shelf registration is an option for issuers to register and sell under the same regulatory document securities which they do not intend to sell immediately.
By using shelf registration, the issuer companies can fulfill all registration-related procedures beforehand and go to market quickly when conditions become more favorable.
Of the shelf registration of P50 billion, an initial tranche of P8 billion in fixed rate bonds will be due 2026.
During yesterday’s meeting, the board also approved ALI’s declaration of cash dividends of P0.238 per outstanding common share.
“This brings full year dividends to P0.476 per common share, which reflects a 15 percent increase from last year’s regular cash dividends, and payout ratio of 40 percent of prior year’s earnings,” ALI said.
