By Neil Jerome C. Morales (The
Philippine Star) | Updated March 31, 2014 - 12:00am
MANILA, Philippines - Property giant
Ayala Land Inc. (ALI) and its subsidiaries are tapping the bond market this
year to support the development of various projects.
A new tranche of the innovative
Homestarter bonds is set to be offered this year and Cebu Holdings Inc. (CHI)
is raising P5 billion this year while non-listed subsidiaries are also seen to
tap the bond market moving forward, an official said.
“We will continue issuing Homestarter
bonds. We are looking at one offering probably around the third or fourth
quarter this year,” said ALI vice-president and treasurer Augusto Cesar D.
Bengzon.
“We understand there’s already a
following for the Homestarter bond so we would like to satisfy the demand,”
Bengzon said, adding that ALI raised P3 billion in two tranches of Homestarter
bonds last year.
Bengzon said the property firm is
still getting inputs from underwriters to gauge if there is market appetite for
another P3 billion Homestarter bonds.
Bondholders, who are notified of newly
launched projects of the property giant, may select an ALI-developed property
and use the savings as downpayment. Investors will enjoy discounts depending on
the amount of investment and the purchase price of ALI residential units.
ALI launched the first Homestarter
bonds in 2006, worth P168 million. It was followed by a P504-million offering
in 2009, P1 billion in 2010, P2 billion in 2011 and P1 billion in 2012.
Aside from the parent firm, Cebu-based
is also planning to raise as much as P5 from the bond market this year.
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