ALI to issue P21-B bonds

MANILA, Philippines - Property giant Ayala Land Inc. (ALI) is tapping the bond market anew to raise as much as P21 billion, its biggest fundraising effort in the capital market thus far.

Proceeds from the sale of the long-term bonds will bankroll the company’s expansion program, the property firm told the local bourse.

In a disclosure, ALI said its board of directors approved the sale of up to P21 billion in corporate bonds through a general public offering.

“The bonds, which are to be registered with the Securities and Exchange Commission, will have tenors of seven, 10 and 20 or 25 years,” ALI said.

“Proceeds, net of issue-related costs, will be used for general corporate purposes,” it added.

It is so far ALI’s largest fundraising eclipsing the P15 billion it secured from a retail bond offering in April last year.

Last month, ALI issued P2 billion worth of “Homestarter” bonds, which is not a fundraising program but primarily a scheme that will allow aspiring homeowners to save for downpayment.

Philippine companies have been tapping funds from different channels like bonds and banks amid low interest rates and high liquidity.

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.

In the same disclosure, ALI said it created a wholly-owned subsidiary, Verde Golf Development Corp., to oversee the operations of the 18-hole Southvale Golf Course in Muntinlupa.

In the first quarter, ALI’s profits jumped 30 percent to P2.76 billion on the back of better performance across all business segments. Consolidated revenues hit P18.53 billion, up 38 percent from P13.39 billion in the same period last year.

ALI expects to continue this year the trend of double-digit growth in revenues and profits. Earnings of ALI surged 27 percent to P9.04 billion last year from P7.14 billion in the previous year as revenues from its residential, hotel, office and commercial projects jumped 23 percent to P54.52 billion.