Ayala Land Inc. prices its seven-year bonds worth P8 billion at a coupon rate of 6.369% annually as disclosed on April 24. The firm is happy to announce how pleased they are with the market’s reception of this offering. And as told by by its CEO, there are a total of eight investment banks that were able to secure the bond’s price at its tightest end. ALI’s joint lead underwriters and bookrunners for the bond offering include BDO Capital & Investment Corporation, BPI Capital Corporation, China Bank Capital Corporation, SB Capital Investment Corporation, First Metro Investment Corporation, Eastwest Banking Corporation, PNB Capital & Investment Corporation and ING Bank N.V.
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The firm is set to launch the issuance of the seven-year bond this coming May 6 and will be listed at the Philippine Dealing and Exchange Corporation thereafter. ALI targets to raise about P7.89 billion or almost P8 billion to fund several of its business not limited to retail projects, hotel projects, and office projects. This offering will be the first division of the P50-billion debt program of ALI. This year, the firm is eyeing to issue P15-P20 billion from its registration. The company has a positive outlook for the coming years and this is good for its existing and new investors. The plan to raise funds will definitely lead to more ALI projects in the future.
The firm also disclosed that the bonds to be issued this year are not the only source of its capital expenditure fund but as well as other loans to be offered by big banks. ALI is more than willing to choose what’s most beneficial to the firm. As part of the fund raising, the capital expenditure of ALI for this year will increase to P130-billion in order to finance its residential projects, hospital projects, office towers, malls, and hotel projects. 95% of the CAPEX will be invested in the Philippines as the firm believes that there is a future in the country’s market.
ALI has a solid belief that the Philippines is still the best site for more of its projects. The firm said that there will be foreign investments but not as large as the portion here in the country. In fact, only 5% of its CAPEX will be spent abroad. Currently, ALI is establishing a mixed-used project located in the 4-hectare land in Klang Valley in Kuala Lumpur. The project is being handled by the MCT Bhd a Malaysian firm where ALI is a major stakeholder. The company is continuously looking for regions with the same feature as Metro Manila to raise their future projects.