Major property developer Ayala Land Inc. trimmed the size of its planned peso bond offering to P3 billion from the initial target of P5 billion.
Ayala Land would sell P3 billion in five-year bonds with a coupon rate of 4.7580 percent a year, according to an offer supplement filed with the Securities and Exchange Commission.
The P3 billion fixed-rate bonds represent the second issuance from the Ayala Land’s three-year shelf registration program worth up to P50 billion approved by the SEC in April.
The first tranche issued in May amounted to P8 billion with a seven-year tenor and a coupon rate of 6.3690 percent per annum.
Ayala Land plans to use the net proceeds from the offering to finance construction of a Manila Bay office tower, Seda Manila Bay in Pasay City and Ayala Triangle Garden Tower Two in Makati.
The offering price will run from Sept 16 to 20. The bonds will be issued and listed with Philippine Dealing & Exchange Corp. on Sept. 30.
Aside from bond offering, Ayala Land plans to raise as much as $300 million in fresh funds from the maiden offering of real estate investment trusts
The property firm’s subsidiary, AyalaLand REIT Inc., or AREIT, will offer Grade-A commercial office assets in Makati.
“ALI believes that REIT initiative is a viable investment vehicle to access new investors, recycle and reinvest capital and promote the development of the Philippine capital markets as a whole,” the property firm said.
AREIT plans to list within the year once all regulatory approvals are in place. It appointed BPI Capital Corp. as issue manager and lead underwriter of the offering. Jenniffer B. Austria
The planned REIT listing will be covered by the current implementing rules and regulations of the SEC on REIT and the minimum public ownership of 67 percent.
Ayala Land earmarked P130 billion in capital expenditures this year to fund development of residential, office, hotel, malls and hotels across its mixed-use estates.