By Arra B. Francia, Reporter
AYALA LAND, Inc. (ALI) secured the highest credit rating for its proposed P10-billion fixed-rate bond issuance, according to a local debt watcher.
In a statement issued Tuesday, the Philippine Rating Services Corp. (PhilRatings) said it assigned a PRS Aaa rating to ALI’s bond issuance, given the company’s strong financial capacity, well-diversified portfolio, and positive outlook.
A PRS Aaa rating is the highest on the debt watcher’s credit rating scale, indicating that a company has an “extremely strong” capacity to meet its financial commitments. ALI’s bond issuance also has a stable outlook, which means that the rating is not likely to change in the next 12 months.
“The ratings were assigned given the following key considerations: continuously growing profitability, coupled with healthy cash flow generation and high cash reserves; sound capitalization, with a manageable debt level and mix; well diversified portfolio, with a sizable and strategic landbank… and sustained healthy outlook for the economy and real estate industry,” PhilRatings said.
ALI’s P10-billion issuance forms part of its P50-billion debt securities program approved by the Securities and Exchange Commission in March 2016, which the company can offer over a period of three years. So far, ALI has already issued P32 billion in bonds from the program.
The listed property developer looks to use the proceeds of the offer to partially finance various projects in Aseana City in Parañaque, City Gate in Makati, Cloverleaf Mall and Vertis Mall, both in Quezon City; as well as the redevelopment of the northern portion of the Ayala Triangle Gardens in Makati.
ALI is planning to raise up to P25 billion from a mix of retail bonds, corporate notes, and bilateral loan deals this year. Its board of directors has already approved a P20-billion fund-raising activity through retail bonds to be listed on the Philippine Dealing and Exchange Corp.
The remaining P5 billion will comprise of debt paper issuances with a tenor of up to five years, to be offered to eligible institutions for the refinancing of ALI’s short-term loans.
This year, the company said it will be spending P110.8 billion in capital expenditures, 21% higher than what it spent in 2017. At the same time, ALI also plans to launch P125 billion worth of projects.
ALI’s net income attributable to the parent rose 21% to P25.3 billion in 2017, supported by a 14% increase in revenues to P122 billion.
Shares in ALI gained 60 centavos or 1.46% to close at P41.60 each at the stock exchange on Tuesday.