Ayala Land Inc. plans to raise P8 billion from the issuance of fixed rate bonds, documents filed with the Securities and Exchange Commission showed Monday.
The P8-billion bond offering forms part of the P50-billion debt securities program that Ayala Land plans to implement over the next two years. The bonds will have a tenor of 10 years.
It appointed BPI Capital Corp. as the lead underwriter of the offering. Joint lead underwriters include BDO Capital & Investments Corp. China Bank Capital Corp., First Metro Investments Corp. and PNB Capital and Investments Corp.
Ayala Land plans to use proceeds from the offering to finance the company’s investment in Malaysia, acquire a 26-hectare property in Cebu and build various office, malls and residential projects.
Ayala Land last year increased its stake in Malaysian development and construction company MCT Bhd to 32.95 percent from 9.16 percent for $92 million.
Ayala Land said the investment in MCT Bhd would enable it to enter the Malaysian market with an experienced team, benefit from synergies of the partnership and further add value to MCT over the long term to enable it to become a key player in the Malaysian real estate market.
Ayala Land said it would spend P1.3 billion to develop a portion of the 26-hectare reclaimed lot in Cebu City, which it won in joint venture with SM Prime Holdings Inc.
Ayala Land is one of the leading and most diversified real estate conglomerates in the Philippines. It is engaged in the planing and development of large scale, integrated estates with a mix of residential lots, office buildings and commercial and industrial lots, leasing of commercial and office spaces and development and operation and management of hotels and resorts.
The company also develops commercial and industrial parks and is engaged in property management, construction and other businesses like retail and healthcare.
Ayala Land’s net income in the first nine months of 2015 increased 19 percent to P12.8 billion from P10.79 billion year-on-year, as the company accelerated growth through acquisitions and new project launches.
Consolidated revenues in the nine-month period reached P75.1 billion, up 10 percent from P68.3 billion on year.