By Neil Jerome C. Morales (The
Philippine Star) | Updated April 25, 2014 - 12:00am
MANILA, Philippines - Property giant
Ayala Land Inc. (ALI) will list today P8 billion worth of bonds in the
country’s trading platform for fixed income securities.
The property developer of the Ayala
conglomerate said it has completed the sale of 11-year bonds to partially fund
its hefty capital spending this year.
The bonds, which were sold starting
April 10, will be traded on the Philippine Dealing and Exchange Corp.
Early this month, ALI secured the
approval of the Securities and Exchange Commission to issue as much as P15
billion worth of bonds.
Philippine Rating Services Corp.
earlier gave ALI the highest credit score for its planned P15-billion bond
sale. ALI hired BPI Capital, First Metro Investment Corp., PNB Capital,
Chinabank, HSBC and Deutsche Bank as the underwriters.
ALI said the proceeds of the bond sale
will partially fund the capital expenditures for this year.
The firm will spend P70 billion this
year, up from P66.26 billion in 2013, to complete ongoing developments and new
launches to help sustain its growth trajectory in the coming years. It also
plans to
launch 78 projects this year with an
estimated value of P142 billion.
In 2013, ALI spent P66 billion for its
various projects, backed by a P12.2-billion overnight share sale in March, a
P15-billion bond sale in August and a P6-billion bond offering in October.
ALI is primarily into the development
of residential projects, lease of commercial and office space and sale of prime
lots. The company is also beefing up its recurring income portfolio through new
hotels, convenience stores, department stores, supermarkets and hospitals.
Last year, profits of the property
developer surged 30 percent to a record P11.74 billion from P9.04 billion in
2012. Consolidated revenues jumped 36 percent to P81.52 billion, driven by
revenues from real estate amid the strong performance across the property
development, commercial leasing and services business lines.
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