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AyalaLand readies new round of ‘Homestarter’ bond sale

Posted on May 27, 2014 10:44:13 PM

AYALA LAND, Inc. (AyalaLand) has taken a step closer to its planned new round of bond sale to the general public as part of moves to support operations, the property developer said in a brief disclosure yesterday.

The company said its board of directors, in a regular meeting held on Monday, approved, among others, “[t]he issuance of up to P5 billion… Ayala Land Homestarter bonds in one or more tranches.”

“The bonds, which are to be registered with the Securities and Exchange Commission, will have a term of three years,” the disclosure read.

“Net proceeds shall be utilized for general corporate purposes,” it added, saying the debt papers “will be sold through a general public offering to retail investors.”

AyalaLand President and Chief Executive Officer Bernard Vincent O. Dy said in a text message that the company plans to sell the bonds next quarter which will yield “approximately P4.9 billion” in net proceeds.

This is the seventh offering of this particular debt paper -- and the biggest so far -- which allows holders to purchase any AyalaLand residential properties, since the program was launched in 2006.

Mr. Dy also said in his text message that the past six rounds raised a total of “approximately P6.7 billion.”

AyalaLand had said in February that it planned to raise up to P15 billion from separate bonds to help finance some P70 billion in capital expenditure this year -- about 6% more than the P66.26 billion actually spent in 2013 but less than 2012’s P71.29 billion. Last month, it raised some P8 billion from the first tranche involving sale of 11-year bonds that will fall due in 2025.

AyalaLand ended last quarter with a P4.194-billion net income that was 31.6% more than the previous year’s P3.187 billion. Profit attributable to controlling shareholders climbed 25.4% to P3.464 billion from P2.762 billion.

Operating revenue increased by 17% to P20.977 billion from P17.927 billion, while operating expense surged by 21.9% to P14.285 billion from P11.715 billion.

AyalaLand shares shed 10 centavos or 0.31% to close P32.05 apiece yesterday from P32.15 each on Monday. -- DJM   
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