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Ayala Land Homestarter Bonds 2013

Posted on May 10, 2013 08:10:40 PM [ BusinessWorld Online ]
PROPERTY GIANT Ayala Land, Inc. rolled out on Friday the sixth series of Homestarter Bonds, an interest-earning financial instrument, in a bid to attract more home buyers.
“We are very pleased to offer yet another series of the Homestarter Bonds driven by a goal to give more people innovative options that could fast-track their purchase of an Ayala Land property. Since we issued the bonds, it has generated close to one billion pesos in total sales for Ayala Land which is a positive indication that people are encouraged to save through the program,” Bernard Vincent O. Dy, Ayala Land executive vice-president and chief operating officer, said in a statement Friday.
Th bond offer, which has an interest rate of 4.0% per annum, marked the sixth Homestarter Bonds series since Ayala Land launched the first series in Oct. 2009, beginning with a P504-million issuance with a three-year tenor ending 2012 and an interest rate of 5% per annum.
Upon the bonds’ expected maturity on May 31, 2016, bondholders will have the option to apply the principal as full or partial down payment for a purchase of an Ayala Land property, or simply have the principal amount remitted to a designated account.
In a briefing at Holiday Inn & Suites Makati on Friday, Augusto D. Bengzon, Ayala Land vice-president and corporate treasurer, noted that the bonds are being offered from May 8 to 24 with a targeted issue date of May 31. Th issuance has been approved by the Securities and Exchange Commission.
As with Ayala Land’s Homestarter Bonds issued last year, the sixth series will require a lump sum, minimum of a P50,000.00 investment, as opposed to monthly payouts, he said.
“Instead of paying every month, you do a lump sum payment, which will mature in three years. The reason for that is that it [the Homestarter Bonds] is not a fundraising activity for Ayala Land; this is a tool for our potential buyers,” Mr. Bengzon said.
“We don’t want to open this up to financial investors; we want to limit this to investors who are contemplating the actual purchase of an Ayala Land property,” he added.
BPI Capital Corp., China Banking Corp., and PNB Capital and Investment Corp. will act as joint underwriters for the Homestarter Bonds issue.
“Strong mortgage banks support them. We see a natural fit for these underwriters to sell the bonds,” Mr. Bengzon said at the briefing.
Ayala Land was organized in 1988 when parent Ayala Corp. decided to spin off its real estate division into an independent subsidiary to enhance management focus on real estate.
The listed developer has earmarked P65.5 billion for capital expenditures this year-P46 billion for project completion and roughly P20 billion for land banking-to bankroll the construction of about 69 property projects valued collectively at P129 billion.
Ayala Land grew its net income for the three-month period ended March by 30% to P2.76 billion from P2.13 billion in the same period last year on the strong performance of all the firm’s business units.
Consolidated revenues climbed by 38% to P18.53 billion from P13.39 billion, while total expenses rose by 43% to P14.07 billion versus P9.84 billion.
Shares of Ayala Land -- Franz Jonathan G. de la Fuente
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