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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