Ayala Land Inc. raising P45 billion for debt refinancing, capex needs

MANILA, Philippines — Property giant Ayala Land Inc. (ALI) is planning to raise as much as P45 billion this year to refinance maturing loans and partially fund general corporate requirements.

ALI said yesterday its board approved the fundraising activity of up to P45 billion, which will be undertaken through retail bonds of up to P16 billion under the shelf registration and listed on the Philippine Dealing and Exchange Corp., SEC-exempt Qualified Buyer Notes of up to P4 billion for enrollment on the PDEx, and bilateral term loans of up to P 25 billion.

Its board has likewise approved the filing with the Securities and Exchange Commission of a three-year shelf registration of up to P50 billion of debt securities.

ALI is spending another record high capital expenditures this year following a banner year in 2018.

The real estate unit of the Ayala conglomerate has announced that it is allocating P130 billion in capex this year, the bulk of which will be used for residential and leasing projects.

Last year, ALI spent a record P110.1 billion in capex, majority of which was used on residential and commercial projects, as well as land acquisition.

ALI finished 2018 with a net income of P29.2 billion, 16 percent higher year-on-year, driven by the company’s strong revenues.

Consolidated revenues rose by 17 percent to P166.2 billion driven by sustained demand for residential products and the healthy performance of its leasing businesses.

Property development revenues grew by 18 percent year-on-year to P113.4 billion due to strong sales across its residential, office for sale and commercial lot segments, while leasing revenues reached P34.9 billion, a 17 percent year-on-year improvement on the back of robust local consumption, increasing demand in BPO offices, and a thriving tourism sector.