ALI to raise B from bonds, loans

Property giant Ayala Land Inc. (ALI) is planning to raise R25 billion from loans and issuance of securities to refinance debt and help fund its planned R110.8-billion capital expenditures for this year.

In a disclosure to the Philippine Stock Exchange, the firm said it is raising R20-billion retail bonds listed in the Philippine Dealing and Exchange Corporation and bilateral term loans to partially finance general corporate requirements.

The retail bonds will be issued under the Corporation’s R50-billion Debt Securities Program as approved by the Securities and Exchange Commission in March 2016.

ALI said it is also raising up to R5 billion through the issuance of Qualified Buyer Notes with a tenor of up to 5 years to refinance the Corporation’s short-term loans.

The firm has announced that it is allotting a record capex this year, 21.6 percent more than the R91.1 billion spent in 2017 as it continues to expand its various businesses.

In an interview, ALI President Bernard Vincent O. Dy said economic fundamentals continue to be supportive of the real estate market as household consumption continues to be good, mortgage rates continue to be low, the business process outsourcing industry (BPO) also continues to grow, and tourism remains to be strong.

“Coming to 2018, we are feeling good of the prospects. Back in 2014 we launched a 2020 plan to reach R40 billion by 2020 and we continue to be on track,” said Dy.

He noted that, “between 2018 to 2020, to be able to get to R40 billion we need to grow by 17 percent a year. We feel this is achievable, primarily because, as I call this, our country continues to grow, macro-fundamentals continue to be supportive of growth.”

“Our capex is significantly higher year on year, so this is gonna be an all-time high. And that is an indication of the opportunities that we see in the market,” Dy added.