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.

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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, profits of the property developer jumped 30 percent to P2.76 billion on the back of better performance across all business segments. Consolidated revenues hit P18.53 billion, up 38 percent from P13.39 billion in the same period last year.

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