By Iris Gonzales (The
Philippine Star) | Updated March 13, 2017 - 12:00am
Ayala Land Inc. (ALI),
the property and mall developer of the Ayala Group, is raising P7 billion
through the issuance of 10-year fixed rate bonds, which is part of the
company’s P50 billion debt program registered under the shelf registration
facility of the Securities and Exchange Commission (SEC). File photo
MANILA, Philippines
- Ayala Land Inc. (ALI), the property
and mall developer of the Ayala Group, is raising P7 billion through the
issuance of 10-year fixed rate bonds, which is part of the company’s P50
billion debt program registered under the shelf registration facility of the
Securities and Exchange Commission (SEC).
Proceeds of the
transaction will be used to partially fund some of ALI’s projects including
upcoming developments worth P49.9 billion, documents submitted to the SEC
showed.
These include the
development of Ayala’s Intercon property where the company is putting up
retail, business process outsourcing offices, hotels and a transport hub. The
capital expenditures for the Intercon development is P17.5 billion, according
to documents filed with the SEC.
Other projects of ALI
that may also use the proceeds from the bond offer include the Ayala Triangle
Garden 2, with a capex of P8.6 billion and its Vertis Mall development in
Quezon City with a capex of P3.5 billion.
“The completion of the
company’s projects will be financed through the net proceeds of the offer and
net cash flows from operations. Costs related to the projects, in general,
include various construction-related materials and services. Construction
materials are procured in bulk and are paid for by thecompany as delivered
materials are billed by suppliers. Construction-related services are measured
based on percentage of work completed and are billed to and paid by the company
based on such progress billings. The net proceeds from the offer, which are
expected to be fully utilized in 2017, will be disbursed accordingly,” ALI
said.
ALI tapped China Bank
Capital Corp., PNB Capital and Investment Corp. and SB Capital Investment Corp.
as joint lead underwriters for the P7-billion bond offer.
The company has
allotted P87.6 billion for capital expenditure this year, an increase from the
P85.4 billion disbursed in 2016.
Of the total amount,
bulk or P40.7 billion will be used for residential projects, while ?11.8
billion will be for malls; ?10.6 billion for land acquisition, ?9.2 billion for
offices, ?5.5 billion on estates, ?4.8 billion for hotels and resorts and ?4.9
billion for other costs.
Last year, ALI launched
43 new projects worth ?87.8 billion composed of 12 residential projects /
office for sale, five shopping centers, four offices and six hotel and resorts.
Furthermore, the
company also opened new shopping centers like Ayala Malls South Park, UP Town
Center, Solenad and Ayala Malls Legazpi and addition of Tutuban Center, Manila.
These projects expanded
the gross leasable area (GLA) of shopping centers to 1.62 million sqm as of end
2016 document showed.
The company also opened
new offices such as Vertis North 1, Ayala Center Cebu, Bonifacio Stopover BGC,
UP Technohub Building P, and UP Town Center BPO.
These projects,
meanwhile, expanded the GLA of offices to 836,000 sqm.
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