ALI plans P10 billion retail bond offer

MANILA, Philippines — Ayala Land Inc. (ALI) plans to raise up to P10 billion in retail bonds. 

Proceeds will  be used for refinancing and general corporate requirements, ALI said in a disclosure yesterday. 

The P10 billion issuance, which is under the company’s current P50 billion shelf registration program, will be listed on the Philippine Dealing and Exchange Corp.

ALI’s board of directors approved the issuance during its meeting Thursday. 

The board likewise approved an additional P25 billion to the company’s current share buyback program bringing the available balance to P26.1 billion. 

The program will be implemented through open market purchases executed via the trading facilities of the Philippine Stock Exchange.

Last year, ALI posted a net income of P33.2 billion, up 13 percent, while total revenue reached P168.8 billion.

The increase was driven by office and commercial and industrial lots sales, and supported by higher contributions from new leasing formats. 

Of the total revenues, property development revenue reached P117.6 billion, while sales reservations grew three percent to P145.9 billion.

The company opened new malls, offices and hotels which boosted the expansion in commercial leasing revenues by 13 percent to P39.3 billion. 

Office revenue totaled P9.7 billion, up 12 percent as ALI expanded its office assets.  Its total office GLA reached 1.17 million square meters from the completion of Ayala North Exchange BPO Tower, Manila Bay BPO Tower and Central Bloc Corporate Center 1 in Cebu. 

Likewise, revenue from hotels and resorts increased 19 percent to P7.6 billion on strong patronage of Seda Ayala Center Cebu and Seda Lio.