MANILA, Philippines - Ayala Land Inc. (ALI) has obtained the Securities and Exchange Commission’s nod to issue P3 billion worth of homestarter bonds.
Based on its preliminary prospectus, the bonds will have a fixed interest rate of five percent per annum over a three-year period.
The first tranche of the bonds with an aggregate amount of P1 billion shall be issued on Oct. 31.
This marks the fifth series of ALI’s homestarter bonds, a fund-building program designed to help prospective buyers of homes offered by the Ayala Group raise the required downpayment.
BPI Capital Corp., China Banking Corp., PNB Capital & Investment Corp. and RCBC Capital Corp. are the underwriters for the offering.
The homestarter bond was first launched five years ago, targeting middle-income individuals and couples who desire to own a home.
Proceeds will be used to partially support ALI’s capital expenditure program for 2012, bulk of which will go to landbanking activities and ongoing and new residential projects.
ALI intends to launch about 24,800 residential units, this year 20 percent more than the 20,613 units launched in 2011.