Ayala Land Inc. successfully raised P10 billion from the issuance of fixed-rate bonds.
The P10-billion bond offering represents the third tranche of ALI’s P50-billion bond shelf registration program earlier approved by the Securities and Exchange Commission.
The offering is comprised Series A Bonds worth P9 billion due 2021 with a coupon rate of 4.2463 percent a year and Series B worth P1 billion due 2027 with coupon rate of 4.9899 a year.
BDO Unibank Inc., BPI Capital Corp., and ChinaBank Capital acted as the joint lead underwriters and joint book runners of the offering.
The bonds will be listed in Philippine Dealing & Exchange Corp. on Nov 6.
Ayala Land plans to use the net proceeds from the bond issue to partially finance the company’s general corporate requirements, including construction of several projects, namely One Ayala Avenue, Ayala Triangle Garden 2, Vermosa Mall, the refurbishment of Glorietta and Greenbelt Malls and the Seda Nuvali expansion.
It will use a portion of the proceeds to fund land acquisitions in Laguna and Batangas.
The bonds received a credit rating of PRS Aaa with a stable outlook from Philippine Ratings Services Corp. (Philratings).
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. A stable outlook, meanwhile, is assigned when a rating is likely to be maintained or remain unchanged in the next 12 months.
In assigning the rating, Philratings considered the company’s well-diversified portfolio with a sizable and strategic land bank for future expansion, as well as its solid brand equity and a highly-experienced management team.
Philratings noted the sustained healthy outlook on the economy and real estate industry and the company’s growing profitability, coupled with healthy cash flow generation and high cash reserves.
Ayala Land is one of the largest real estate conglomerates in the Philippines. It is primarily involved in the development of large scale, integrated mixed use estates.
It is a highly diversified company with investments in shopping center and office leasing, hotels and resorts, construction and property management.
Ayala Land reported a net income of P17.52 billion in the first half of the year, up 11 percent year-on-year.