Posted on December 01, 2015
10:46:00 PM [ BusinessWorld Online ]
By Krista A. M.
Montealegre, Senior Reporter
PROPERTY giant Ayala Land,
Inc. (ALI) is taking on more debt with a plan to raise P50 billion through the
sale of bonds and commercial papers, the real estate firm said in a disclosure
to the stock exchange yesterday.
A MAN walks past an
advertisement for a condominium in Makati City in this Nov. 7, 2008 file photo.
--
Ayala Land’s board of
directors approved on Nov. 27 the filing with the Securities and Exchange
Commission (SEC) of a shelf registration of up to P50 billion worth of debt
securities from which the company intends to sell up to P20 billion in
corporate bonds and up to P10 billion in commercial papers next year.
Proceeds will be used for
general corporate purposes, the company said.
The company’s shares added
85 centavos or 2.51% to close at P34.70 each on Tuesday.
Ayala Land Chief Finance
Officer Jaime E. Ysmael told reporters last month that the issuance of bonds is
the preferred fund-raising mode of the company.
The property firm has yet
to finalize its capital expenditure plan for next year, but initial indications
point to a range of P85-90 billion to support the high level of spending
required to grow its residential, shopping mall, office and hotel businesses,
Mr. Ysmael had said.
The projected 2016 capex
budget is roughly the same level compared to the downward revised P80-90
billion for this year. The property firm’s capex have reached P60.3 billion as
of September.
Ayala Land is not in a
hurry to raise funds even with the prospects of higher interest rates in the
United States on expectations that borrowing costs will not move up
significantly and liquidity will remain high, Mr. Ysmael had said.
Ayala Land has undertaken
two fund-raising activities early this year to finance its capex this year.
In January, the property
giant raised P16 billion from an overnight top-up placement, the single largest
capital-raising exercise in the 23 years that the property giant has been a
listed company.
Ayala Land returned to the
bond market in April with a P7-billion issuance, the final tranche of a
P15-billion bond offer that was approved by the SEC last year.
Ayala Land’s net profit
grew 19% to P12.8 billion in the first nine months of the year from P10.79
billion a year ago, anchored on a 10% jump in consolidated revenues to P75
billion.
The firm is targeting a 20%
annual growth rate to hit a net income of P40 billion by 2020 under its “2020
Vision.”
