ALI retires P8-M Homestarter bonds

Ayala Land Inc. has already retired P8 million in Homestarter Bonds as of Oct. 18.

In a disclosure to the Philippine Stock Exchange (PSE), ALI said the bonds were retired following the exercise by various bondholders of their early downpayment application option.

The Homestarter Bonds, a concept pioneered by ALI, enable bondholders to build up full or partial downpayment to buy a residential unit in the future.

ALI first launched the innovative instrument in 2006, making it the first property company to issue such types of bonds.

Bondholders have the option to exercise early downpayment application if they already want to buy a house.

Following the retirement of P8 million bonds, ALI said it now has total outstanding bonds amounting to P2.9 billion that are listed on the Philippine Dealing and Exchange Corp. (PDEX).

The company will continue to grow the business and may also reintroduce Homestarter bonds in the future, depending on market opportunities and demand.

It is on track to hitting its 2020 growth plan on the back of a growth strategy equally divided between property development and leasing.

The plan is to grow the company’s net income by an average of 20 percent to reach P40 billion by 2020.

Under this plan, 50 percent of the growth will come from property development — divided equally between horizontal and vertical projects and 50 percent from leasing such as malls, office hotels and resorts.

A key component of the 2020 growth plan is to triple ALI’s leasing assets with a focused completion of investment properties.