AYALA LAND Inc. (ALI) expects to sell fixed-rate bonds of almost P10-billion and to collect funds to reimburse those bonds provided by the immobile company early on.
The bid is part of the sixth edition of the P50-billion securities scheme registered by ALI. The total amount of bond issue costs, commissions and expenditures is projected to increase by P9.88 billion.
“On March 12, Ayala Land Inc. received a bid supplement, including a sixth tranche of its P50 billion securities Programme, to the public sale of federal fixed rate bonds of up to P10 billion,” the Commission announced in an email to reporters on Friday night.
The company’s short-term loans used for the early repayment of the P8-billion fixed-rate bonds owing by ALI in 2025, released in 2014 at an average interest rate of 5,625%, would use net proceeds from this sale.
It shall also finance corporate demands for assets under Alveo Land, Inc. and Avida Land Corp. in Quezon City in Laguna and Cavite. Investment Company
At least P50,000 will be released and multiples P10,000 will be issued afterwards. They are traded in P10,000 denominations on the secondary market.
The Commission approved the P50-billion bond program in 2019 and has subsequently released some P37,25-billion fixed-rate bonds in five tranches.
The first securities tranche, which amounted to P8 billion, was released in April 2019. In September of the same year, the second tranche was released, worth P3 billion, and in the following month the third tranche was issued.
In 2020, the corporation released in June the fourth tranche of P10 tranche and in September the fifth tranche of the programme, P6.25 tranche of bonds were published.
As jointly leading bond-offering underwriters and bookcutters, ALI has picked BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capitable Corp., East Wes Banking Corp., and SB Capital Investment Corp.
The property company of Ayala recorded a 74 percent decrease from the P33.20 billion in its net revenue in 2020 to P8.7 billion, while sales decreased from P168.8 billion by 43 percent to P96.3 billion last.
Ayala Land is to sell up to P10-B bonds due in 2025.