Ayala Land Inc. plans to list its Homestarter Bonds worth P3 billion with the Philippine Dealing & Exchange Corp.
The listing will be the first for Ayala Land’s pioneering financial instrument that aims to givehome buyers the opportunity to purchase real estate products.
Ayala Land said in a filing with the Securities and Exchange Commission the P3-billion Homestarter Bonds would have a tenor of three years and a fixed interest rate of 3 percent a year.
BPI Capital is the lead underwriter of the offering, while China Banking Corp. and PNB Capital and Investment Corp. are the joint underwriters of the transaction.
Ayala Land has issued seven tranches of Homestarter Bonds since they were first launched in 2006.
The bond has served an effective savings instrument for many bondholders. It is an interest-earning financial instrument that targets retail investors, who wants to earmark funds that may be used as full or partial downpayment in the purchase of an Ayala Land property.
The bonds are the first of such to issued from Ayala Land’s P50-billion debt securities program earlier approved by the SEC.
Ayala Land has increased the maximum subscription to P10 million per eligible bondholder from P5 million under the previously issued Homestarter Bonds.
Bondholders at the end of the three-year period will have the option to apply the principal amount, including interests, as partial or full payment for the purchase of a house and lot or condominium being developed by various units of Ayala Land.
Ayala Land earlier said net income rose 16 percent in the first half of the year to P9.74 billion from P8.39 billion year-on-year, after aggressively launching real estate projects to boost the residential and recurring income businesses.
First-half consolidated revenues rose eight percent to P54.76 billion from P50.61 billion.
Ayala Land lunched P65.7 billion worth of real estate projects in the first six months of the 2016.
It registered reservation sales of P55.1 billion in the six-month period with sales to migrant Filipino workers reaching P12.7 billion, up three percent from a year ago level.