MANILA, Philippines — Property giant Ayala Land Inc. (ALI) raised P33 billion from a recent offering of fixed-rate bonds.
This comes on the heels of a P12-billion six-year fixed-rate bonds issued last May, with a coupon rate of 5.8086 percent per annum.
ALI deputy treasurer said the twin offerings used the same set of financials allowing for quicker execution.
“With this latest bond offer, we raised P45 billion in debt capital, representing a 90 percent utilization rate of our P50 billion shelf registration in less than a year,” he said.
Proceeds from the latest offering will be used for refinancing, funding general corporate requirements, and capital expenditures for upcoming real estate projects.
ALI said the 2024 bonds carry a coupon rate of 4.3969 percent per annum while the 2027 bonds have a coupon rate of 6.211 percent per annum.
The 2029 bonds carry a coupon rate of 6.8045 percent per annum.
The two, five, and seven-year bonds are ALI’s largest issuance to date and its second for the year in the local capital debt market.
ALI posted a net income of P3.2 billion in the first quarter, up 14 percent year-on-year, supported by continuing cost-efficiency measures amid the pandemic.
The bonds were listed at the Philippine Dealing & Exchange Corp., the country’s fixed-income exchange.
PDEx president and CEO Antonio Nakpil said this could only be a positive signal of the corporate sector’s continued thrust for economic revival even in the face of stresses brought on by global events.
“Of course, this thrust should be led by a firm that has surpassed the ebbs of past cyclical downturns and crises in its 34-year existence individually and 188 years in history as part of a conglomerate.
Such institutional memory would be important for continued corporate resilience, especially with the unfolding challenges,” Nakpil said.