Ayala Land Inc. plans to issue P5 billion worth of five-year fixed retail bonds this month.
Ayala Land in a filing with the Securities and Exchange Commission scheduled the offering period from Sept 12 to 18. The bonds will be issued and listed with Philippine Dealing & Exchange Corp. on Sept. 27.
China Bank Corp. is the sold underwriter and book runner of the bond offering.
The P5-billion fixed-rate bonds represent the second tranche of the P50-billion shelf registration program approved by the SEC in April.
The first tranche issued also in April amounted to P8 billion with a seven-year tenor and a coupon rate of 6.3690 percent a year.
Ayala Land said it would use the net proceeds from the latest fundraising activity to partially finance the company’s programmed spending this year.
Aside from bond offering, Ayala Land is also looking to raise as much as $300 million in fresh funds from the maiden offering of real estate investment trust.
Under the plan, the property firm’s subsidiary AyalaLand REIT Inc. will provide the initial seed of prime, Grade-A commercial office assets in Makati.
“ALI believes that REIT initiative is a viable investment vehicle to access new investors, recycle and reinvest capital and promote the development of the Philippine capital markets as a whole,” the company said.
AREIT plans to list within the year once all regulatory approvals are in place.
AREIT appointed BPI Capital Corp. as issue manager and lead underwriter of the offering.
The planned REIT listing will be under the current implementing rules and regulations of the SEC on REIT and follows the minimum public ownership of 67 percent.
Ayala Land has earmarked P130 billion for capital expenditures this year to fund development of residential, office, hotel, malls and hotels across its mixed-use estates.
The property firm, however, has already spent P49.5 billion in the firs six months of the year.
Share price of Ayala Land on Monday rose 0.6 percent to P47.60.