Major property developer Ayala Land Inc. plans to issue up to P50 billion worth of fixed-rate bonds to finance its capital spending plan.
Ayala Land chief finance officer Augusto Bengzon said in an interview over the weekend the company would seek board approval to file a P50-billion bond shelf registration program with the Securities and Exchange Commission. It may issue the fixed rate bonds within a three-year period.
Bengzon said the company plans to raise between P15 billion and P20 billion this year through bank borrowings and bond offerings.
Ayala Land said on Friday it would allot a record P130 billion this year for capital expenditures from the actual spending of P110 billion in 2017 to fund expansion plans.
Bengzon said the firm would use at least 40 percent of the budget for the residential segment, 25 percent for the leasing business and the balance for land acquisitions and estate development.
The property firm plans to launch P130 billion worth of residential and office-for-sale projects this year. Bengzon said the figure was slightly lower compared with P139.4 billion in 2018 and that the launches would depend on the market’s appetite.
The group plans to open three malls that will add up to 200,000 square meters in gross leasable area to its portfolio. The new malls are located in Cebu, Makati and the Manila Bay area in Pasay City.
Ayala Land is scheduled to deliver 190,000 sqm of office space for 2019 and open an additional 900 hotels rooms.
The property company also plans to launch two new estate developments this year, one in Batangas and another one in Tarlac.
Ayala Land currently has 26 large-scale, integrated mixed-use estates with the opening of two new ones in 2018—Parklinks in Quezon City and Habini Bay in Mindanao.
Ayala Land also plans to add 3,545 beds to the dormitory business from 2,228 units.
The company has 3,968 sqm of co-working space under its Clock-In brand.
The group plans to expand its factory buildings and the warehouses business, which currently has 137,000 sqm of leasable space under its portfolio.