MANILA, Philippines - Property
giant Ayala Land Inc. (ALI) is looking at raising a minimum of P2 billion
through its “Homestarter” bonds program, a senior official said.
The property developer can
generate more funds and stir interest of more investors and potential
homebuyers given new offices abroad.
For the fifth tranche of the
Homestarter bonds, Jaime E. Ysmael, senior vice-president and chief finance
officer of ALI, said the company is looking to secure the same amount as the
fourth batch.
“At the very least, the same
amount. We will work out the mechanics on how to place it, how to sell it, how
to maintain the serial bonds,” Ysmael said in an interview.
Last year, the property firm sold
P2.016 billion worth of ALI Homestarter bonds. It is double the P1.008 million
bonds sold in the previous year.
“We will see if we can sustain
that (momentum)...hopefully the same if not more than the previous level,”
Ysmael said.
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 five percent interest per year.
Bondholders, who are notified of
newly launched projects of the property giant, may select an ALI-developed
property and use the savings as payment.
While ALI has yet to peg a
specific amount, the company is looking at selling the bonds in the second or
third quarter.
“Now that we have just completed
the P15 -billion retail bond offering, we can start working on other
instruments like that,” Ysmael said. The bond sale was completed last month,
with the proceeds committed to partly support the record P37-billion capital
spending this year.
Ysmael said the Homestarter bonds
are not primarily for fundraising “but it is more to attract more customers to
buy residential properties.”
ALI launched the first
Homestarter bonds in 2006, worth P169 million. It was followed by a
P504-million offering in October 2009.
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