Ayala Land to borrow P19B via bond issue | Inquirer Business

Ayala Land to borrow P19B via bond issue

/ 02:09 AM June 12, 2023

The Zobel family’s Ayala Land Inc. firmed up details for a P19-billion bond sale that will be launched this week.

Based on deal prospects dated June 8, the property giant also finalized the pricing for the debt offer, with its Series A five-year notes paying 6.0253 percent per annum and Series B 10-year notes paying 6.2948 percent per annum.

ADVERTISEMENT

The offer period will run from June 13 through June 19, 2023. The bonds will be listed on the Philippine Dealing & Exchange Corp. on June 26.

Based on the prospectus, the minimum purchase amount is P50,000 while excess amounts will be in multiples of P10,000.

FEATURED STORIES

Ayala Land said the base offer will amount to P14 billion plus an oversubscription option for another P5 billion.

The developer is raising money to bankroll expansion plans and to lower borrowing costs.

It said P10.4 billion will be used to partly finance capital expenditures while P8.37 billion will be used to partially refinance short-term loans used to pay for the early redemption of its bonds issued in 2018.

Underwriting team

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

The debt sale will mainly come from the developer’s newly-registered P50 billion debt program.

Ayala Land earlier said it would raise capital expenditures in 2023 by 17 percent to P85 billion.

It will allocate about 39 percent of the budget for residential projects.

ADVERTISEMENT

The remaining amount will be spent on land acquisition (23 percent), estate development (16 percent), malls (8 percent), offices (4 percent), hotels and resorts (3 percent) and other projects.

During the first quarter of 2023, Ayala Land said net income jumped by 42 percent to P4.5 billion while total revenues climbed 26 percent to P30.9 billion. INQ

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business
For feedback, complaints, or inquiries, contact us.
Your subscription could not be saved. Please try again.
Your subscription has been successful.

Curated business news

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.



© Copyright 1997-2023 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.