Property developer Ayala Land Inc. raised P8 billion from the sale of 10-year bonds, amid a strong demand from investors, one of the underwriters handling the transaction said over the weekend.
BPI Capital Corp. managing director Eric Roberto Luchangco said Ayala Land’s bond offering was well received by the market, as the offer was 3.7-times oversubscribed with total demand reaching P29 billion.
“The Ayala Land name is very well respected and the company has been part of the portfolio of most investors,” Luchangco said, when asked why the demand for the bonds was very strong.
“The market is also quite liquid,” he said.
Ayala Land was able to raise the entire P8 billion from the bond offering, at the time conglomerate San Miguel Corp. was also conducting a P30-billion preferred shares offering.
The P8-billion bond offering, which carried an interest rate of 4.85 percent per annum, was a part of the P50-billion debt securities program of the property developer.
The bonds will be listed with the Philippine Dealing & Exchange Corp. on Wednesday.
Proceeds from the offering will primarily be used to finance the company’s corporate requirements and capital expenditures, including the redevelopment of the site of Intercontinental Hotel in Makati City into a transport hub with retail and office components.
The amount will also support the construction of a high-end office project and retail center at Ayala Triangle also in Makati and the construction of Cloverleaf Mall in Balintawak, Quezon City.
Aside from BPI Capital, other underwriters handling the transaction were BDO Capital & Investments Corp., China Bank Capital Corp., First Metro Investments Corp., PNB Capital and Investments Corp. and East West Banking Corp.
Ayala Land reported a net income of P17.6 billion in 2015, up 19 percent from P14.8 billion in 2014.
Consolidated revenues rose 13 percent to P107.2 billion from P95.2 billion it posted in the previous year.
The growth was attributed to the sustained performance of the company’s property development and leasing businesses and improved margins across product lines.