Ayala Land Inc is looking to raise P10 billion through bond issuance that forms part of its P50 billion shelf-registered bond approved by regulators in 2019.
The company said this is the sixth issuance from the shelf-registered securities, carrying a tenor of four years, the coupon of which will be calculated based on a “European 30/360-day count basis,” paid quarterly in arrears.
Ayala Land said the proceeds of the offer will be used to refinance any short-term loans that will be drawn to finance the early redemption of the company’s P8-billion bonds issued in 2014 carrying a 5.625 percent coupon and will be due 2025.
It will also be used to finance general corporate requirements related to several land acquisitions in Laguna, Cavite, and Quezon City.
BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., EastWest Banking Corp., and SB Capital Investment Corp. serve as joint lead underwriters and bookrunners.
In February Ayala Land said it plans to spend P88 billion this year, up 38.15 percent from last year’s P63.7 billion as it slowly implements initiatives to recover from last year’s slump.
Of the 2021 capex, the bulk will go to residential development (44 percent), followed by land acquisition (26 percent), and then by estate development (13 percent). Ayala Land eyes to launch P100 billion in projects this year.