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.

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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 Corp. and Deutsche Bank AG Manila branch are the co-lead underwriters.

Philippine companies have been tapping funds from different channels like bonds and banks amid low interest rates and high liquidity.

ALI has allotted P65.5 billion in capital expenditures this year as it plans to launch 69 new projects to ensure continuous growth in the coming years. It launched 67 new projects last year worth P110 billion.

In the first quarter, this year, ALI’s profits 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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