Posted on February 28, 2014 07:48:43
PM [ BusinessWorld Online ]
LISTED Cebu Holdings, Inc. (CHI), an
affiliate of Ayala Land, Inc., plans to sell bonds to raise up to P5 billion
“for general corporate purposes”, the Cebu-based property developer said in a
disclosure on Friday.
The company said its board of
directors on Thursday approved “the issuance of bonds in the amount of up to P5
billion” which will be sold through a general public offering.
“The bonds, which are to be registered
with the Securities and Exchange Commission and listed on the Philippine
Dealing & Exchange Corp., will carry a tenor of up to eight years,” the
disclosure read.
“Net proceeds of the bonds shall be
utilized for general corporate purposes.”
CHI’s announcement came a few days
after Ayala Land itself secured its board’s approval to sell up to P15 billion
worth of bonds to fund capital expenditures (capex). Last Monday, Ayala Land
said the bonds will carry a tenor of up to 11 years and will be used to
partially fund its P70-billion capex this year. The main property unit of
conglomerate Ayala Corp. will spend the capes to complete ongoing developments
and launch new projects. The firm plans to launch 78 projects this year.
JOINT VENTURE PROGRESS
In another development, CHI and
another affiliate of Ayala Land -- Cebu Property Ventures & Development
Corp. (CPVDC) -- have been authorized to participate in the joint venture of
Ayala Land and Aboitiz Land, Inc. (AboitizLand).
The same disclosure of CHI said its
board ratified the approval of its executive committee to accept Ayala Land’s
“assignment of the right to subscribe to 10% of the authorized capital stock of
the joint venture company that will be established pursuant to the joint
venture agreement with AboitizLand...”
In a separate disclosure, CPVDC said
it has been authorized to subscribe to 5% of the capital stock of the same
joint venture firm.
Last month, Ayala Land disclosed that
it assigned those rights to its affiliates and will retain the remaining 35% in
the 50-50 joint venture with AboitizLand to develop a 15-hectare (ha) property
in Mandaue City, Cebu.
“This undertaking will allow the
company to benefit from the local knowledge and expertise of CHI and CPVDC,
leading to better efficiencies and possible synergies that will maximize the
opportunities in the Cebu property market,” Ayala Land had said then.
Both CHI and CPVDC said the
partnership will enhance their respective portfolios, adding that the project
is consistent with their thrust to expand business in the Cebu property market.
CHI’s operations consist of rent of
retail space, commercial land sales, as well as office and residential
condominium sales, among others. CHI owns and manages Cebu Business Park, a
50-ha business and commercial subdivision in Cebu City. The company has also
developed two office condominiums in Cebu: Cebu Holdings Center and Ayala
Life-FGU Center Cebu.
CPVDC is engaged in real property
ownership, marketing, management, and development. It is the owner and
developer of Asiatown IT Park, a 24-ha property complementing Cebu Business
Park and located at the site of former Lahug Airport.
On Friday, CHI’s shares closed at
P5.18 apiece, down two centavos or 0.38% from P5.20 on Thursday; while CPVDC
“A” and “B” shares last closed trading on Feb. 21 at P4.60 and on Monday at P5,
respectively. -- Claire-Ann Marie C. Feliciano
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