Ayala Land to raise P10B from bond issuance

Ayala Land Inc. is raising up to P10 billion from the offer of fixed-rate bonds, mainly to finance maturing debt and general corporate requirements.

The bonds will have a four-year term and will be issued in denominations of P50,000 each as a minimum and in multiples of P10,000 thereafter, and will be traded in denominations of P10,000 in the secondary market, according to its prospectus filed to the corporate regulator.

ALI tapped BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., and SB Capital Investment Corp. as the joint lead underwriters and bookrunners for the transaction.

Out of the principal P10 billion, ALI expects net proceeds of P9.88 billion which will be used to refinance the company's P8.0-billion fixed-rate bonds due 2025 issued in 2014, as well as general corporate requirements as may be determined from time to time.

The latest issuance is the sixth tranche of the company's P50-billion securities program. It offered P8-billion worth of securities in May 2019, P3 billion in September 2019, P10 billion in November 2019, P10 billion in June 2020, and P6.25 billion in September last year.

ALI is engaged in the planning and development of estates with a mix of residential lots and buildings, office buildings and commercial and industrial lots, and the leasing of commercial and office spaces.

It also develops commercial and industrial parks, and is engaged in property management, construction, and other businesses like retail and healthcare.

ALI's subsidiaries include Alveo Land Corporation, Avida Land Corporation, Ayala Property Management Corporation, Makati Development Corporation, North Triangle Depot Commercial Corporation, Laguna Technopark Inc., and Ten Knots Philippines Inc.

Shares in ALI closed Friday, March 12 up by P0.40 or 1.09% at P37.00 apiece versus the previous finish of P36.60. — Jon Viktor D. Cabuenas/BM, GMA News