Property developer Ayala Land Inc. plans to raise up to P22 billion from the issuance of fixed-rate bonds.
ALI said in a disclosure to the stock exchange the bond offering would have a base offer of P17 billion and an option for another P5 billion to cover over-allotment.
The base offer will consist of P4.75-billion bonds to be issued as fourth and final tranche from ALI’s P50-billion bond shelf registration program approved by the Securities and Exchange Commission in 2021 and P12.25 billion as first tranche from the new P50-billion program to be registered with the SEC.
ALI plans to list the bonds on the Philippine Dealing and Exchange Corp.
The property firm engaged seven banks as joint lead underwriters and book runners for the offering. These are BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., RCBC Capital Corp. and SB Capital Corp.
ALI said it would use the proceeds from the fund-raising activity to develop various projects of subsidiaries in Quezon City, Cavite, Caloocan, Bulacan, Tarlac, Makati, Cebu, Mandaluyong, Tagaytay and Davao.
ALI said it earmarked P85 billion in 2023 capital expenditures primarily to develop more integrated estates, residential, malls, office buildings and hotels.
The property firm bounced back strongly in 2022 on the strength of the reopened economy since the 2020 pandemic.
ALI’s net income jumped 52 percent in 2022 to P18.6 billion as consolidated revenues rose 19 percent to P126.56 billion.
Real estate revenues, composed of property development, commercial leasing and services, reached P116.36 billion, or 21 percent higher than P96.15 billion in 2021.
