Property developer Ayala Land Inc. said Thursday it plans to raise P9 billion from the debt market to refinance debt and fund capital expenditures.
Ayala Land said in a disclosure to the stock exchange the additional P9-billion fund would be sourced through the issuance of retail bonds, corporate notes or bilateral term loans.
“This will bring Ayala Land’s total approval to P50 billion primarily for the purpose of refinancing outstanding loans and partially financing our general corporate requirements,” Ayala Land said.
The property firm earlier said it would seek another P50 billion in fresh bond shelf-registration to support refinancing activities and take advantage lower local interest rates.
It also plans to spend P88 billion in capital expenditures this year, higher than P63.7 billion it earmarked in 2020 as it prepares for a V-shaped recovery in its businesses.
Ayala Land posted a net income of P6 billion in the first half, up 34 percent from the same period last year as businesses showed significant improvements in performance compared to the first half of 2020 at the onset of the pandemic.
First-half revenues also rose 19 percent year-on-year to P49 billion.
The company launched 14 projects with a total sales value of P44.3 billion in the first six months, or nearly half of the P100 billion worth of projects it programmed to launch for the whole year.
It spent P32.1 billion in capital expenditures in the first semester, including 50 percent on residential projects, 21 percent on estate development and 12 percent on land acquisition and others.
It launched in June a new estate development called South Coast City. The 26-hectare waterside development is located within the South Road Properties in Cebu City.
The project is a joint venture of Ayala Land, SM Prime Holdings Inc. and Cebu Holdings Inc. The company plans to spend P90 billion to complete the project.
The share price of Ayala Land climbed 2.05 percent Thursday to close at P34.52.