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Ayala Land offers largest debt issue

July 21, 2013 7:38 pm [ ]
LISTED property giant Ayala Land Inc.’s (ALI) public offer of its largest single-tenored debt issue has already started and will end Thursday this week. This offering is aimed to raise funds for the developer’s capital expenditures.
On Friday, the firm already commenced its public offer of P15-billion bonds due 2014. The public offer will be until 5 p.m. of July 25. The issue and listing date for the bonds is scheduled on July 30, 2013.
According to ALI, the original base offer size was P10 billion but was upsized to P15 billion because of strong investor demand. The bond was priced at a coupon rate of 5 percent.
Proceeds of the offering will be used to partially finance the capital expenditures of the ALI.
For this year, ALI has earmarked a capital expenditure of P65.5 billion, slightly lower than the P71.29-billion capital expenditure it allocated in the previous year.
“The company is extremely pleased with the results of the book-building and pricing exercise which demonstrated the commitment and support from the underwriting syndicate, as well as the high level of interest from retail investors who are expected to subscribe to a significant portion of the issue during the one week offer period,” Augusto Bengzon, ALI treasurer, said.
“The 5-percent rate, 10-year tenor and P15-billion issue size are supportive of the company’s 5-10-15 Plan—a strategy which was put in place in 2009, where the company would target, within 5 years, to more than double its net income base to P10 billion and achieve a return on equity of 15 percent,” he further said.
BPI Capital Corp., BDO Capital & Investment Corp., China Banking Corp., ING Bank, N.V., Manila Branch and Standard Chartered Bank are joint lead underwriters and bookrunners, while Deutsche Bank AG, Manila and First Metro Investment Corp. are co-lead underwriters.
BPI Capital Corp. is sole issue manager.
In 2012, the company posted an all-time high net income attributable to equity holders of ALI of P9.04 billion, which was 27 percent higher than the P7.14 billion recorded in 2011.

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