Major property developer Ayala Land Inc. plans to raise another P10 billion in fixed-rate bonds in November.
ALI chief finance officer Augusto Bengzon said in an interview Monday at the sidelines of the listing of the company’s P3-billion fixed rate bonds with Philippine Dealing & Exchange Corp. the company would offer 2- and 7.25- year bonds to partially fund programmed capital spending in 2019.
Bengzon said BPI Capital Corp. would be the lead underwriter of the offering and China Banking Corp. as one of the underwriters.
“This will be a unique offering because it will be dual tenor issuance with two-year bond together with a 7.25 year bond,” Bengzon said.
“There is demand for shorter issuance. So we will have the flexibility to determine how much will go to 2-year bonds and to the 7.25-year bonds,” he added.
The planned P10-billion bond offering will be third tranche under ALI’s P50-billion bond shelf registration program approved by the Securities and Exchange Commission in April.
The company will use the net proceeds from the P10-billion bond offering to partially fund the company’s capital spending plan in 2019.
ALI has earmarked P130 billion in capital expenditures this year to primarily fund expansion of malls, hotels and offices projects across its mixed-use estates.
Bengzon said the company also remained on track with its target of P130 billion worth of launches for 2019.
ALI launched only 13 projects in the first half of the year, with a total sales value of P19.5 billion.
Bengzon said October and November would be very busy months of ALI after lining up several launches in the last quarter of the year.
“Similar to last year, we see more launches in the last two quarters of the year. The fourth quarter particularly will be busy in terms of residential launches,” Bengzon said.
Meanwhile, Bengzon said the results of the recent real estate survey conducted by the Bangko Sentral ng Pilipinas validated the company’s continued positive outlook on the property sector.
“Price appreciation continues to be there year-on-year as condominium prices moved by close to 10 percent. In terms of area, Metro Manila projects moved up by five percent. So it is a healthy appreciation,” Bengzon said.
