SEC OKs Ayala Land’s P50 billion bond offering

MANILA, Philippines — The Securities and Exchange Commission (SEC), the corporate regulator, has approved Ayala Land Inc. (ALI)’s shelf registration of up to P50 billion worth of bonds. 

The SEC, in a meeting on June 6, approved ALI’s offering which may be issued in one or more tranches within a period of three years.

Of the total, ALI will offer up to P12.25 billion of five-year and 10-year bonds, plus an oversubscription option of up to P5 billion, for the initial tranche.

This is on top of the company’s remaining allocation of P4.75 billion of bonds which comprises the fourth and final tranche of its existing P50-billion debt securities program, approved by the SEC in 2021.

Assuming the oversubscription option is fully exercised, ALI could net up to P21.73 billion from the offering, which will be used to refinance short-term loans and to fund capital expenditures.

The bonds will be offered to the public at face value from June 14 to 20, in time for listing on the Philippine Dealing and Exchange Trust Inc. on June 27, according to the latest timetable submitted to the SEC.

Ayala Land tapped BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp., and SB Capital Corp. as joint lead underwriters and bookrunners for the offer.