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Ayala Land launches P15-B bond sale

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     
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