Ayala Land to issue P10 B bonds

Property giant Ayala Land Inc. is set to issue P10 billion worth of 10-year fixed-rate bonds to partly finance some mixed-use developments.

The proposed bonds were assigned a credit rating of PRS Aaa, with a stable outlook.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The issuer’s capacity to meet its financial commitment on the obligation is extremely strong.

PRS Aaa is the highest rating assigned by PhilRatings.

In assigning the rating, PhilRatings considered ALI’s continuously growing profitability, coupled with healthy cash flow generation and high cash reserves, sound capitalization, well diversified portfolio with a sizable and strategic landbank for future expansion, and the sustained healthy outlook for the economy and real estate industry.

The issuance is part of the company’s three-year debt securities program of up to P50 billion, of which P32 billion has already been issued.

Proceeds from the offering will be used to partially fund mixed-use developments in the former location of Hotel Intercon, in the Aseana City complex, and the City Gate in Makati as well as the redevelopment of northern portion of the Ayala Triangle Gardens, Cloverleaf Mall and Vertis Mall.

ALI is primarily involved in the development of high-end, middle-income and affordable housing segments. It is also into office and shopping center leasing, hotel operations, construction and property management.

With 10,285 hectares of developable area in its landbank as of the end of 2017, ALI is positioned to take advantage of 55 identified growth centers in the country.

ALI’s market leader status is further enhanced by the backing of its principal shareholder, Ayala Corp., which owned 46.8 percent of the property firm as of end-2017.

The company posted a net income of P28.17 billion last year, up 15 percent from 2016.

Real estate revenues rose 13 percent to P133.1 billion.

ALI aims to post a net income of P40 billion by 2020.