ALI issues P2-B Homestarter bonds

MANILA, Philippines - Property giant Ayala Land Inc. (ALI) is issuing P2 billion worth of bonds that will allow aspiring homeowners to save for downpayment.

ALI is offering the sixth tranche of the Homestarter bonds, an interest-earning instrument targeting retail investors.

“This is a tool for potential buyers to enable them to buy an ALI property. We don’t want to open this to financial investors,” Augusto D. Bengzon, vice-president and treasurer of ALI, said in a briefing.

“Since we issued the bonds, it has generated close to P1 billion in total sales for ALI, which is a positive indication that people are encouraged to save through the program,” said ALI chief operating officer Bernard Vincent O. Dy.

ALI launched the first Homestarter bonds in 2006, worth P169 million. It was followed by a P504-million offering in 2009, P1 billion in 2010, P2 billion in 2011, and P1 billion in 2012.

The new series will require a minimum lump sum investment of P50,000. Offering period started on May 8 and will end on May 24.

The three-year bonds have a coupon rate of four percent, around 200 basis points higher than the benchmark rates, Bengzon said.

ALI tapped PNB Capital, BPI Capital and Chinabank as facilitators of the transaction.

Bondholders, who are notified of newly-launched projects of the property giant, may select an ALI-developed property and use the savings as downpayment. Investors will enjoy discounts depending on the amount of investment and the purchase price of ALI residential units.

The property firm allotted P65.5 billion in capital expenditures this year as it plans to launch 69 new projects worth P129 billion to ensure continuous growth in the coming years.