AYALA Land, Inc. (ALI) has listed its P10-billion fixed-rate bonds at the Philippine Dealing and Exchange Corp. on June 26 in a move that it hopes will help boost the local bond market.
The two-year bonds have a coupon rate of 3% yearly with an issue size of P6 billion and an oversubscription option of P4 billion. They are due in 2022.
The listed real estate developer said these were “strongly received,” being oversubscribed 1.75 times, which led it to raise the size to P10 billion.
“Our primary objective during the last three months was to ensure that we preserve value for Ayala Land and maintain financial sustainability. It was therefore imperative that we ensure that we have more than adequate liquidity to meet our obligations and that we manage our cost of funding during this period,” ALI President and Chief Executive Officer Bernard Vincent O. Dy said.
ALI secured the approval of the Securities and Exchange Commission on June 11 to issue the bonds, which were offered between June 15 to 19.
The company is the first non-bank entity to have issued bonds in the local debt capital market since the quarantine period.
Mr. Dy said he expects that the success in issuing the bonds would help reinvigorate the local market, encouraging more investors to participate despite the impact of the global pandemic.
“We are confident that as the economy continues to reopen, business will continue to pick up and we hope to resume our expansion program within the next few months,” he added.
ALI tapped BPI Capital Corp., BDO Capital & Investment Corp., and Chinabank Capital Corp. as joint lead underwriters for the issuance. It also joined PNB and Investment Corp. and SB Capital Investment Corp. as co-lead managers. — Adam J. Ang
