By Richmond Mercurio (The Philippine Star) | Updated April 7, 2015 - 12:00am
MANILA, Philippines - Ayala Land Inc. (ALI) has started the ball rolling for its planned P7-billion debt sale to partially finance its record P100-billion capital expenditures (capex) this year.
In an interview, ALI vice president and treasurer Augusto Bengzon said the company is targeting to complete its P7-billion bond issuance by the end of this month or early next month.
“We are now undergoing institutional building. Price setting should happen in the next two weeks. After which, we go to a one-week offer period,” Bengzon said.
“We are already offering the next tranche of our corporate/retail bonds worth about P7 billion. That’s the balance of the P15 billion we sought for approval for last year,” added ALI chief executive officer Jimmy Ysmael.
The property arm of the Ayala conglomerate last year raised P8 billion from the initial tranche of its P15-billion bond issuance.
The upcoming P7-billion bond offering will kick-off ALI’s plan to borrow about P15 billion to P20 billion this year to support its aggressive expansion program which will entail a record investment of P100 billion.
Aside from this month’s issuance, Ysmael said the property giant is also eyeing to raise P1 billion to P2 billion more through the offering of its “Homestarter” bonds.
ALI last year deferred the issuance of up to P5 billion worth of Homestarter bonds after already completing its fundraising activities for the year.
“We are looking at Homestarter bonds, that’s a small issue maybe P1 to P2 billion. The rest are bilateral loans at the subsidiary level, accessing the bank lines directly available,” Ysmael said referring to the company’s planned borrowings this year.
ALI’s net income grew 26 percent last year to P14.8 billion, riding high on the positive momentum of the country’s real estate sector.
The robust performance of its property development and commercial leasing operations, which increased 21 percent and 18 percent, respectively, powered the 18 percent-growth in ALI’s real estate revenues to P93 billion.