By Jenniffer
B. Austria | Posted on Aug. 05, 2013 at 12:01am | manilastandardtoday.com
Property
developer Ayala Land Inc. has authorized two units to raise up to P6 billion
from the bond market in September.
Ayala Land
chief finance officer Jaime Ysmael said in an interview Alveo Land and Avida
Land planned to issue P3 billion in bonds each to finance their expansion
programs.
The proposed
bond issuance is still subject to approval by the Securities and Exchange
Commission.
“If SEC
approves it, it would be the first time that non-listed firms would be allowed
to tap the bond market,” Ysmael said.
Ysmael said
Ayala Land had recapitalized the equity base of Alveo Land and Avida Land,
which were considered mature firms, to enable them to directly tap the debt
market.
“This would
enable them to develop track record and be financially independent,” Ysmael
said.
He said once
approved by the SEC, the P6-billion bond issuance by Avida Land and Alveo Land
was expected to take place next month.
Ayala Land
also raised P15 billion in July from a bond issue with a coupon rate of 5
percent that will mature in 2024. The company plans to use the proceeds to
partially fund its P65.5-billion capital expenditure this year.
Meanwhile,
Ayala Land launched a mixed-use community, called Altaraza in San Jose del
Monte, Bulacan ,and will soon launch another project in Porac, Pampanga.
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