by Jenniffer B. Austria
[ manilastandardtoday.com ] March 28, 2011
The Securities and Exchange Commission approved the application of Ayala Land Inc. to issue P2 billion worth of fixed rate bonds under the company’s Homestarter Bonds scheme.
Documents obtained from the SEC showed that the bonds would mature in three years at a fixed interest rate of 4.88 percent per annum.
Ayala Land said the offer period is scheduled to start on May 6, with the issue date to start on May 16.
Ayala Land said the offering aimed to benefit the low to middle-income market segment to encourage them to save and own real estate property in the future.
Bondholders, or home buyers, under the scheme will be required to set aside as low as P5,000 a month for a subscription for over 36 months. The home buyers can use the principal of P180,000, plus the accrued interest rates, as down payment to purchase a subdivision lot, house and lot or condominium sold under the Ayala Land group.
Ayala Land has four residential brands, namely Ayala Land Premier, which is geared toward the high-end market, Alveo Land for the middle market, Avida Land for the low-end segment and Amaia Land for the affordable sector.
Bondholders also have the option to get the principal amount of the bonds plus accrued interest rates upon maturity.
The property company has tapped BPI Capital Corp. and SB Capital Corp. to act as joint underwriters for the bond offering.
Ayala Land first launched the homestarter bond program in 2006.
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