Ayala Land Inc – Maniolas

ALI eyes debt market to fund P66-B capex

Economy

Feb 142014

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) is tapping the debt market as a major fund source for its P66-billion capital spending this year.

The property developer of the Ayala conglomerate is banking on high liquidity in the financial service sector for its fundraising program, a top company executive said.

“(Fundraising will be) still primarily through debts…we have debt capacity that we can utilize,” said ALI chief finance officer Jaime Ysmael.

ALI has already refinanced most of its debts, making the company comfortable in the current maturity profile and interest rates due to lenders, he said.

The real estate firm is allotting close to P70 billion for its capital expenditures this year to support landbanking and project developments.

In 2013, ALI spent P66 billion for its various projects, backed by a P12.2-billion overnight share sale in March, a P15-billion bond sale in August and a P6-billion bond offering in October.

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“Given our pipeline of projects, we estimate that our capital spending will be similar in magnitude [for 2014],” Ysmael earlier said.

“Hopefully the high liquidity in the banking system will help mitigate any increase [in interest rates],” he said.

The Bangko Sentral ng Pilipinas has assured companies it has a wide range of toolkit to address any possible rate increases and make economic conditions still workable for everyone, Ysmael said.

ALI is primarily into the development of residential projects, lease of commercial and office space and sale of prime lots. The company is also beefing up its recurring income portfolio through new hotels, convenience stores, department stores, supermarkets and hospitals.

In January to September last year, ALI’s profits jumped 30 percent to P8.6 billion, mainly driven by the upbeat performance of its property development, commercial leasing and services businesses.

The property firm is wrapping up its 5-10-15 program, launched in 2009 amid the global financial crisis. It is a five-year plan ending in 2014 that aims to boost ALI’s net income to P10 billion and return on equity to 15 percent.

Ayala Land starts P15-B bond offer

Economy

Jul 192013

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) has started tapping the bond market, marking its largest fundraising in the capital market thus far. In a disclosure, ALI said it kicked off yesterday the public offer of P15 billion worth of bonds due 2024. “It is ALI’s largest debt issue for a single tenor to date,” the company said, adding that the bonds carry a coupon rate of five percent. The public offering will run until July 25, which will be followed by the issues listing on July 30. “The issue size is inclusive of an additional P5 billion oversubscription due to strong investor demand,” ALI said. “Proceeds of the offering will be utilized to partially finance the company’s capital expenditure program for the year in support of its aggressive growth plans,” it added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Last week, the property firm secured the Securities and Exchange Commission’s approval for the issuance of as much as P21 billion worth of bonds in different tranches. In June, ALI’s board approved the sale of up to P21 billion in long-term, fixed-rate corporate bonds through a general public offering. It will be the largest fundraising of ALI thus far, eclipsing the P15 billion it secured from a retail bond offering in April last year. ALI hired BPI Capital Corp., BDO Capital & Investment Corp., China Banking Corp., ING Bank N.V. Manila branch and Standard Chartered Bank as joint lead underwriters and bookrunners while First Metro Investment Read More …

ALI to issue P21-B bonds

Economy

Jul 162013

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) has secured the approval of the Securities and Exchange Commission (SEC) to issue as much as P21 billion worth of bonds. This development will allow the property arm of the Ayala conglomerate to conduct its largest fundraising in the capital market. In a disclosure, ALI said it has received SEC approval to sell up to P21 billion in bonds. “The company will issue the initial tranche of the bonds as soon as all other necessary documents are submitted and all the required approvals are secured, which hopefully will be completed before the end of the month,” ALI said. Last week, ALI chief finance officer Jaime Ysmael said the fundraising will “partly finance our capital expenditures program for the year.” In June, ALI’s board of directors approved the sale of up to P21 billion in long-term, fixed-rate corporate bonds through a general public offering. It will be the largest fundraising of ALI thus far, eclipsing the P15 billion it secured from a retail bond offering in April last year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Philippine companies have been tapping funds from different channels like bonds and banks amid low interest rates and high liquidity. The property firm allotted P65.5 billion in capital expenditures this year as it plans to launch 69 new projects worth P129 billion to ensure continuous growth in the coming years. It launched 67 new projects last year worth P110 billion. In the first quarter, Read More …

ALI trims capital to P21.5B

Economy

Feb 012013

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) will trim its authorized capital stock to P21.5 billion as several preferred shares were eliminated from the company. In a disclosure, ALI said it secured the Securities and Exchange Commission’s approval for the decrease in its authorized capital stock by P1.303 billion to P21.5 billion from P22.803 billion. The lower authorized capital stock reflects “the aggregate par value of the 13.034 billion preferred shares which have been redeemed and eliminated,” ALI said. Hence, ALI’s capital stock will decline to P21.5 billion divided into 20 billion common shares with a par value of P1 and 15 billion voting preferred shares worth 10 centavos each. This is lower than the P22.803 billion authorized capital divided into 20 billion common shares at P1 each, 15 billion voting preferred shares at 10 centavos each and 13.034 billion preferred shares worth 10 centavos each. The company’s board of directors approved the capital decrease in April last year. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 ALI is into residential and office development, and shopping mall and hotel operations. In the nine months to September last year, ALI’s earnings reached P6.62 billion, up 27 percent from P5.23 billion a year earlier on the back of the strong performance in all its business lines.