Property giant Ayala Land, Inc. will sell as more than P1 billion worth of fixed-rate bonds to potential homebuyers, the firm told the local bourse on Friday.
"Due to a strong market demand for the bonds, the issue manager and underwriter have received firm commitments to purchase the bonds and an additional amount thereof, which constitute the entire oversubscription option," Ayala Land said.
Early last month, the Securities and Exchange Commission approved the plan of Ayala Land to issue P504 million worth of fixed rate bonds, with an oversubscription of P504 million, to potential homebuyers.
Under the program, families are required to set aside a minimum of P5,000 per month, or P180,000 in three years. The amount will earn a 5% interest per year. The bondholder may select an Ayala Land-developed property and use the savings as down payment.
Bondholders will also be notified of newly launched projects of the property firm.
It is the third tranche of the company’s "Homestarter" scheme, which started with P169-million worth of bonds in 2006. It was followed by a P504-million offering in October last year.
BPI Capital Corp. is the issue manager and underwriter.
Ayala Land has three major brands -- Ayala Land Premier for the high-end segment, Alveo Land for the middle-income segment, and Avida Land for the "affordable" market. Economic housing unit Amaia Land is being marketed as a sub-brand of Avida Land.
On Tuesday, Ayala Land entered into an agreement with Lucio C. Tan-led Eton Properties Philippines, Inc., allowing Amaia Land to develop four hectares of land in Calamba, Laguna owned by Eton Properties.
Shares in Ayala Land, whose profits fell by 16% to P4 billion last year given the economic downturn, were unchanged on Friday at P13.75 each. -- N. J. C. Morales
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