By Jenniffer B. Austria | Apr. 26,
2015 at 10:35pm [ manilastandardtoday.com ]
Property developer Ayala Land Inc. has
successfully raised P7 billion from the sale of seven-year bonds amid strong
demand from investors, according to one of the underwriters handling the
transaction.
Reginal Cariaso, equity markets head
of BPI Capital Corp., one of the underwriters, said in a text message total
demand reached P17 billion as of the end of the offer period on April 22.
Interest rate for the bonds due 2022
was set at 4.5 per annum. Issue date is on April 29.
Proceeds from the bond sale will be
used to partially finance the company’s P100.3-billion programmed capital
spending this year.
The company will spend the proceeds
for the construction of shopping malls, office buildings and hotels in Vertis
North in Quezon City, Circuit Makati in Sta. Ana Makati and South Park District
in Alabang.
Aside from BPI Capital, Ayala Land
also tapped PNB Capital, China Bank and Hongkong Shanghai Banking Corp. as the
underwriters for the offering.
It also hired BDO Capital and
Investments Corp. and First Metro Investments Corp. as co-lead managers for the
offering.
The P7-billion bond sale represents
the second and final tranche of the P15-billion bond offering of Ayala Land
which was approved by the Securities and Exchange Commission last year.
Ayala Land sold P8 billion worth of
bonds due 2025 at 5.6250 percent annum in 2014.
Aside from the P7 billion bond
offering, Ayala Land also plans to issue another tranche of Homestarter Bonds
worth as much as P2 billion in the second half of the year.
This will be the seventh tranche of
Homestart Bonds that will be issued by Ayala Land since the program was
launched in 2006.
Homestarter Bonds is program that aims
to provide opportunities for people to purchase real estate products. It is an
interest-earning financial instrument that primarily targets retail investors
who wish to set aside funds that may be used as full or partial downpayment for
the purchase of an Ayala Land property.
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