Major property developer Ayala Land Inc. plans to issue up to P8 billion in five-year fixed rate bonds to partially finance its capital expenditure program.
Ayala Land said in a disclosure to the stock exchange over the weekend the P8-billion bond represented the unissued balance from the company’s P50-billion debt securities approved by the Securities and Exchange Commission in 2016.
The bonds will be listed with Philippine Dealing & Exchange Corp.
Ayala Land has issued P39 billon worth of fixed rate bonds and P3 billion worth of Homestarter Bonds out of the total debt securities program, .
Ayala Land chief finance officer Augusto Bengzon said in a recent briefing the company planned to issue the balance of P8 billion to fund capital expenditures and repay short term loans.
The property firm earlier programmed to spend P111 billion in capital expenditures for 2018, up 21 percent higher from P91.4 billion it spent in 2017.
Ayala Land has spent P48.4 billion from its capex during the first six months of the year. Residential projects accounted for the bulk of the spending at 45 percent, followed by commercial leasing projects at 25 percent.
Ayala Land also spent P14 billion in the first half of the year for acquisitions and another P8.8 billion for estate development. It spent the balance for offices, hotel and resorts development and other subsidiaries.
Early this year, Ayala Land raised P10 billion from the issuance of 10-year fixed rate bonds at a yearly interest rate of 5.9203 percent.
Ayala Land posted a net income of P13.5 billion in the first half of the year, up 18 percent from P11.5 billion it reported in the same period last year, propelled by solid contributions from the property development and commercial leasing businesses.
First-half revenues climbed 25 percent to P80.4 billion from P64.5 billion, as the company developed more sustainable mixed-use estates across the country.
Sales reservations reached P72.0 billion, 17 percent higher on year and equivalent to an average monthly take-up of P12 billion.