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Ayala Land to raise P1.97B

Posted on September 10, 2012 10:57:34 PM [ BusinessWorld Online ]

PROPERTY DEVELOPER Ayala Land, Inc. aims to raise up to P1.97 billion in net proceeds from the sale of the first tranche of its planned P3-billion Homestarter Bond, according to a registration statement the company filed with the Securities and Exchange Commission (SEC) last Friday but made available to media only yesterday.

“For the first tranche, the net proceeds are estimated to be up to P1,973,288,375.00, after deducting fees, commissions and expenses relating to the offering of the bonds,” according to Ayala Land’s registration statement, which has yet to be approved by the SEC.

“Proceeds of the offer are intended to be used for general corporate purposes.”

The company’s latest fixed-rate Homestarter Bond -- endorsed by Ayala Land’s board last Aug. 28 -- will be offered in two tranches with a total amount of P3 billion, the registration statement noted.

The company hopes to issue the first tranche on Oct. 26 and the second tranche a year later.

The bonds -- which will have a tenor of three years, an issue price that is 100% of face value and an interest rate of 5.00% per annum -- will be offered in minimum denominations of P50,000 and in multiples of P10,000 hereafter.

These will then be listed on the Philippine Dealing & Exchange Corp. at a date yet to be determined.

Upon the debt papers’ planned maturity on Oct. 26, 2015, bondholders will have the option to apply the Homestarter Bond principal as full or partial down payment for purchase of an Ayala Land property, or simply have the principal amount remitted to a designated account, the registration statement added.

BPI Capital Corp., China Banking Corp., PNB Capital & Investment Corp., and RCBC Capital Corp. will serve as underwriters for this transaction, while BPI Capital will act as sole issue manager.

Ayala Land was organized in 1988 when parent firm Ayala Corp. decided to spin off its real estate division into an independent subsidiary to enhance management focus on its real estate business, according to data posted on the Philippine Stock Exchange Web site. It went public in 1991.

For 2012, Ayala Land had initially earmarked some P37 billion in capital expenditures (capex) to fund around 67 new projects with an estimated sale value of P90 billion, as well as for the acquisition of new properties, the firm said last February.

The company later raised its 2012 capex to P47 billion to support unbudgeted property acquisitions and for a possible “strategic alliance” with the Ortigas group.

Ayala Land reported that its net income grew 28% to P4.33 billion in the first half from P3.38 billion the previous year, supported by double-digit gains across its units.

Consolidated revenues in the first half rose 18% to P25.02 billion from last year’s P21.25 billion, while costs and expenses increased 13.50% to P18.41 billion from P16.22 billion in the same comparative periods.

Ayala Land shares slid 65 centavos or 2.83% to P22.30 yesterday from P22.95 on Friday last week. -- F. J. G. de la Fuente

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