ALI plans massive fund raising

AYALA LAND, Inc. (ALI) plans to raise up to P45 billion in fresh capital this year to partially fund general corporate requirements and to refinance loans.

AYALA LAND, Inc. (ALI) plans to raise up to P45 billion in fresh capital this year to partially fund general corporate requirements and to refinance loans.

In a disclosure to the stock exchange on Wednesday, the listed property developer said its board of directors approved the plan to raise funds from a combination of retail bonds, qualified buyer notes, and bilateral term loans.

ALI said it plans to file an application for the shelf registration of up to P50 billion worth of debt securities with the Securities and Exchange Commission (SEC). A maximum of P16 billion is scheduled to be issued out of this program, which will then be listed on the Philippine Dealing and Exchange Corp. (PDEx).

A total of P25 billion will be sourced from bilateral loans. The company will also issue SEC-exempt qualified buyer notes of up to P4 billion. The notes will then be enrolled on the PDEx.

This type of debt instrument is issued to a qualified buyer as per SEC Memorandum Circular No. 6, Series of 2007, which describes a qualified buyer as a person who has a minimum annual gross income of P25 million for at least two years before registration, one who has a personal net worth of P30 million, or with a total portfolio investment of at least P10 million.

The fund-raising activities are seen to “partially finance general corporate requirements and to refinance maturing loans.”

At the same time, ALI said its board of directors has also declared cash dividends of 26 centavos per outstanding common share. This is three percent higher than the 25.2-centavo per share dividend released in the first half of 2018.

“The cash dividend will be payable on March 29, 2019 to stockholders of common shares as of record date March 13, 2019,” the company said.

ALI is allocating P130 billion for capital expenditures this year, 18% higher than its total spending in 2018, to continue its development of residential, office, commercial, and leisure properties across the country.

Of its 2019 capex, 40% will be spent for residential development. About 20-25% will go to its leasing business, while the remainder will be deployed for land acquisition.

ALI’s net income rose by 16% to P29.2 billion in 2018, driven by the performance of its residential and commercial business. Consolidated revenues also went up 17% to P166.25 billion.

Reservation sales hit P141.9 billion last year, following the launch of P139.4 billion worth of residential and office units for sale in the same period.

Shares in ALI dropped 0.67% or 30 centavos to close at P44.65 each at the stock exchange on Wednesday.