Ayala Land completes P7-b bond sale

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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