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Friday, March 29, 2024

Ayala Land to raise P19b to refinance existing debt

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Property developer Ayala Land Inc. said it plans to raise up to P19 billion from a combination of debt and bond issuances to refinance outstanding obligations.

Ayala Land said in a disclosure to the stock exchange its board of directors approved the raising of up to P19 billion through the issuance of retail bonds and corporate notes to be listed with the Philippine Dealing & Exchange Corp.

The company is also looking to raise funds through bilateral loans.

Ayala Land recently filed an application with the Securities and Exchange Commission to issue up to P6 billion worth of fixed-rate bonds due 2022.

The company tapped BDO Capital and Investments Corp., BPI Capital Corp. and China Bank Capital as the joint lead underwriters and book runners for the offering.

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The P6-billion fixed-rate bonds represent the fourth tranche of its P50-billion bond shelf registration earlier approved by the SEC.

Ayala Land earlier issued three tranches of the bonds worth P21 billion.

The company said proceeds from the new offerings would be used to partially finance general corporate requirements and/or capital expenditure requirements, particularly for the leasing business.

Ayala land reported a net income of P4.3 billion in the first quarter, down 41 percent from the same period last year reflecting the severe impact of the enhance community quarantine across its businesses.

First-quarter consolidated revenues declined by 28 percent to P28.4 billion as both residential and leasing businesses registered contraction in sales.

Residential revenues fell 39 percent to P13.8 billion while office-for-sale revenues dropped 68 percent to P962 million.

Commercial leasing revenues reached P8.7 billion, down 5 percent from a year ago.

Ayala Land said it waived about P2.6 billion worth of rent from tenants in its 32 shopping malls nationwide during the enhanced community quarantine period.

Share price of Ayala Land declined by 2.2 percent to close at P29.25 on Wednesday.

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