Major property developer Ayala Land Inc. plans to file with the Securities and Exchange Commission another P50 billion in debt securities program as the company remains positive about the overall domestic real estate industry.
Ayala Land chief finance officer Augusto Bengzon said in an interview at the sidelines of the company’s recent P8-billion bond listing ceremony with Philippine Dealing & Exchange Corp., it planned to file late this year or early next year another shelf registration program after using up the P50-billion bond shelf program registered in 2015.
“It will probably be a similar amount to what we have filed,” Bengzon said when asked about the potential size of the bond shelf program.
The planned debt securities program will be a combination of all kinds of fixed-income instruments, including fixed-bonds.
Ayala Land on Friday successfully raised P8 billion from the issuance of five-year bonds representing the sixth and final tranche from the P50-billion debt securities program.
Ayala Land issued P47 billion worth of fixed rate bonds and P3 billion worth of Homestarter bonds.
With the latest P8-billion bond offering, Bengzon said Ayala Land had fully secured the company’s funding requirements for 2018.
Ayala Land this year programmed P111 billion in capital expenditures, up 21 percent from P91.4 billion spent in 2017.
The company will use the bulk this year’s capital expenditures for the expansion of residential projects and malls and land acquisitions.
Meanwhile, Bengzon said the bond shelf registration had been helpful in timely raising funds for the projects.
A shelf registration allows an issuer to register and sell under the same prospectus and other regulatory filing requirements a certain volume of securities that the issuer does not intend to use up right away.
The SEC allows the issuer a three-year window to tap the shelf registration.
Ayala Land is one the leading and most diversified real estate companies in the Philippines. It reported a net income of P13.54 billion in the first half of the year, up 18 percent from P11.5 billion year-on-year.
Consolidated revenues reached P80.39 billion, up 25 percent from P64.5 billion on year, driven mainly by real estate revenues which rose 25 percent to P75.8 billion.