Ayala Land utilized 90% of shelf registration bonds
PROPERTY developer Ayala Land Inc. (ALI) said it has utilized 90 percent of its P50billion shelf registration of bonds with the Securities and Exchange Commission in less than a year.
Earlier this week, the property developer listed its P33 billion on fixed-rate bonds due 2024, 2027 and 2029 at the Philippine Dealing and Exchange Corp. (PDEX).
The Series A bonds due 2024 carry a coupon rate of 4.3969 percent per annum. The Series B paper due 2027 has a coupon rate of 6.2110 percent. ALI’S Series C debt paper due 2029 has a coupon rate of 6.8045 percent.
The 2-year, 5-year and 7-year bonds are ALI’S largest issuance to date and its second for the year in the local capital debt market.
The company also issued P12billion 6-year fixed-rate bonds with a coupon rate of 5.8086 percent last May.
“These twin offerings used the same set of financials which allowed for quicker execution,” Jose Emilio B. Jamir, the company’s deputy treasurer, said.
“With this latest bond offer, we raised P45 billion in debt capital, representing a 90 percent utilization rate of our P50-billion shelf registration in less than a year,” he said.
Proceeds of the offering will be used for refinancing, funding 2general corporate requirements and capital expenditures for upcoming real estate projects, the company said.
“This could only be a positive signal of the corporate sector’s continued thrust for economic revival even in the face of stresses brought on by global events. Of course, this thrust should be led by a firm that has surpassed the ebbs of past cyclical downturns and crisis in its 34-year existence individually and 188 years in history as part of a conglomerate. Such institutional memory would be important for continued corporate resilience, especially with the unfolding challenges,” PDEX President and CEO Antonio Nakpil said.
ALI’S total outstanding listed bonds are now at P120.3 billion, representing 8.9 percent of the total outstanding listed corporate bonds at the PDEX.