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Ayala Land eyes P21-B bond offering

Posted on June 19, 2013 10:30:46 PM
By Cliff Harvey C. Venzon, Reporter
AYALA LAND, Inc. is looking to raise P21 billion in a bond offering to bankroll general corporate expenses, the company said in a disclosure yesterday.
“Please be informed that, at its regular meeting held this afternoon, our board of directors approved the following: the issuance of up to P21 billion in corporate notes,” the disclosure stated.
The bond issuance, which has yet to be approved by the Securities and Exchange Commission (SEC), will have tenors of seven, 10 and 20, or 25 years, it added.
“Proceeds, net of issue-related costs, will be used for general corporate purposes,” it said. “The bonds will be sold through general public offering.”
Ayala Land Chief Financial Officer Jaime E. Ysmael said the bonds will be offered when the company bags regulatory approval.
“We will seek SEC approval of our planned bond issuance so the issue date is projected sometime in the third quarter,” Mr. Ysmael said in a text message yesterday.
“The bonds will be issued in one tranche but will have multiple tenors as we intend to manage the maturity profile of debt,” he added.
The bond offering will mark another fund-raising effort of the property arm of conglomerate Ayala Corp.
Ayala Land in March raised P12.2 billion from a share placement to bankroll the completion of its projects.
Meanwhile, other firms that have tapped the bond market this year include GT Capital Holdings, Inc., which raised P10 billion in February and San Miguel Corp., which raised $800 million after offering offshore bonds in April.
In the same disclosure, Ayala Land said it has incorporated Verde Gold Development Corp., which will oversee the operations of Southvale Golf Course project in Cavite.
Ayala Land’s net income grew by 20.83% to P3.19 billion in the first quarter from P2.64 billion in the same period last year as revenues climbed by 39.35% to P18.52 billion from P13.29 billion.
The company 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.
Shares of Ayala Land dropped by 70 centavos or 2.30% to P29.70 per share yesterday from P30.40 on Tuesday.
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