Posted on
July 19, 2013 08:28:35 PM [ BusinessWorld Online ]
LISTED Ayala
Land, Inc. has launched the first tranche of its planned P21-billion fixed-rate
bond issue to help fund capital expenditure, the company said in a disclosure
on Friday.
"Ayala Land commenced on July 19 its
public offer of P15 billion bonds due 2024, its largest debt issue for a single
tenor to date. The bonds carry a coupon rate of 5.00%," the disclosure
read.
The offer
will run until 5 p.m. of July 25, it added, while listing date is July 30.
"The
issue size in inclusive of an additional P5 billion oversubscription due to
strong investor demand," the company said.
"Proceeds
of the offering will be utilized to partially finance the company's capital
expenditure program for the year in support of its aggressive growth
plans."
BPI Capital
Corp., BDO Capital & Investment Corp., China Banking Corp., ING Bank N.V.
Manila Branch and Standard Chartered Bank were tapped as joint underwriters and
book runners, while First Metro Investment Corp. and Deutsche Bank A.G. Manila
are co-lead underwriters. BPI Capital is the sole issue manager.
Ayala Land
Chief Financial Officer Jaime E. Ysmael last Wednesday said the company will
issue the bonds by tranche. The official was not immediately available for
details on Friday.
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 help bankroll
construction of about 69 property projects worth a total of P129 billion.
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 completion of its projects.
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 selling offshore bonds in April.
Ayala Land's
net income grew by 20.83% to P3.19 billion in the first quarter from P2.64 billion
in the same three months last year as revenues climbed by 39.35% to P18.52
billion from P13.29 billion.
Shares of
Ayala Land lost 45 centavos or 1.45% to P30.50 apiece on Friday from P30.95
each on Thursday. -- Cliff Harvey C. Venzon
__________________________________________________________
