Property developer Ayala Land Inc. filed an application with the Securities and Exchange Commission to issue P10 billion worth of 10-year bonds to finance the construction of various real estate projects.
Ayala Land said in a filing with the SEC the P10 billion fixed-rate bond offering would represent the fifth tranche of the company’s P50-billion debt securities program approved by the corporate regulator in March 2016.
Data showed that of the P50-billion debt securities program, Ayala Land issued P32 billon worth of fixed-rate bonds and P3 billion worth of Homestarter bonds.
This means that with the planned issuance of another P10-billion bonds, Ayala Land would have a balance of only P5 billion under the bond shelf registration.
The property firm tapped BDO Capital and Investments Corp., Chinabank Capital and PNB Capital as joint lead underwriters and joint book runners for the latest offering.
The bonds will be listed with Philippine Dealing & Exchange Corp.
Net proceeds from the fund raising activity will be used to support this year’s construction of retail, office, hotel within township projects in Makati, Quezon City and Manila Bay area.
Ayala Land earmarked a record P111 billion in capital expenditures in 2018, up 21.2 percent from P91.4 billion in 2017.
The company said 43 percent of programmed spending this year would be for residential, 17 percent for malls, 12 percent for land acquisition and the balance for office, hotels and resorts and estate development.
Aside from raising P10 billion through the issuance of fixed-rate retail bonds to fund capital spending, Ayala Land also plans to borrow from local banks.
Ayala Land said it expected most of its business units to continue growing at a healthy pace through 2018.