ALI to issue P15-B bonds for capex

MANILA, Philippines - Property giant Ayala Land Inc. will issue up to P15 billion worth of retail bonds to partly fund its capital expenditures this year amounting to P70 billion.

In a disclosure to the Philippine Stock Exchange, ALI said the bonds, which will be sold through a public offering, will have a tenor of up to 11 years.

Net proceeds from the issue would be used for general corporate purposes and together with internally generated funds will cover full capex for 2014.

The bonds will be registered with the Securities and Exchange Commission and will be listed on the Philippine Dealing and Exchange.

ALI is rolling out 78 projects this year worth about P142 billion to sustain its upward trajectory. This will translate to a total of 30,000 units across all residential brands this year.

Slated for construction this year are six new shopping malls, eight office buildings, five hotels and resorts, two commercial estates and two healthcare facilities.

The company grew its 2013 profit by 30 percent to a record P11.74 billion, exceeding its target a year ahead of its five-year plan.

The company’s five residential brands launched a total of 28,482 units worth P108 billion.

Revenues from property development, which includes the sale of residential lots and units, office spaces as well as commercial and industrial lots, jumped by 51 percent to P51.96 billion.

Sales take up reached an all-time high P91.93 billion, equivalent to an average monthly sales of P7.66 billion.