By Arra B. Francia, Reporter
AYALA LAND, Inc. (ALI) is planning to register another P50 billion
under the Securities and Exchange Commission (SEC)’s shelf registration
program, allowing the company to raise money from the issuance of fixed
securities in the next three years.
“We’re considering, given that we’ve exhausted the first shelf of P50
billion. We’re looking at registering again either late this year or
early next year. I guess a similar amount,” ALI Chief Finance Officer
Augusto Cesar D. Bengzon told reporters after the listing ceremony for
the company’s fixed rate bonds at Philippine Dealing and Exchange Corp.
in Makati last Friday.
Mr. Bengzon said the debt securities program will be a combination of
commercial papers, bonds, and other types of fixed income instruments.
“We should be filing probably early next year, because we have
completed our funding requirements already for the year,” the ALI
executive said.
The listed property giant last Friday used up the P50 billion under
its initial shelf registration approved by the SEC in 2016. The company
was able to raise P8 billion during the final tranche from the issuance
of fixed rate bonds with an annual coupon rate of 7.0239%.
ALI also offered P10 billion in fixed rate bonds during the first
half of the year, intended to fund the construction of several mall
projects.
The company raised a total of P29 billion in fixed rate bonds from
2016 to 2017, and P3 billion worth of homestarter bonds in 2016.
The bond issuances this year partially financed the firm’s
P110.8-billion capital expenditure, as ALI ramped up its project
launches and construction to take advantage of the growing demand for
residential units in the country.
Residential projects cornered bulk of ALI’s capex at 43% or P47.4
billion, while 17% or P18.7 has been allocated for mall projects. Some
12% or P14 billion will be for land acquisitions; P8.5 billion will be
for office projects; P7 billion for hotels and resorts; while the
remaining P8.8 billion will be for the development of existing estates.
With the accelerated spending, ALI has slated P125 billion worth of
project launches this year, higher than the value of 28 projects it
unveiled in 2017 at P88 billion.
ALI grew its net income attributable to the parent by 18% to P13.5
billion in the first six months of 2018, after revenues also went up by
18% to P80.4 billion. Reservation sales in the same period stood at P72
billion, indicating P12 billion worth of properties sold every month.
The higher capital spending is in line with ALI’s goal to reach a net
income of P40 billion in 2020, with equal contributions from the
residential and leasing segments.
Mr. Bengzon noted ALI would have to post a 17% compounded annual growth rate until 2020 to hit its target.
______________________________________________
