AYALA Land Inc. (ALI) currently accounts for the biggest share of bond listings on the Philippine Dealing and Exchange (PDEx) with a total of P22 billion worth of bonds so far, or nearly a third of the total amount listed this year.
On Friday, ALI held the ceremonial listing for its P7 billion fixed rate bonds due 2023, which is the third tranche of its three-year P50 billion debt securities program that was approved by the Securities and Exchange Commission (SEC) last March.
This brings ALI’s bond listings for 2016 to P22 billion or about 30.7 percent of the P71.69 billion worth of new listings in 2016.
The property developer issued the first two tranches of its fixed-rate retail bonds worth P8 billion and P7 billion in March and April, respectively.
ALI debt management head Ricardo Ulysses Tabije told reporters that the recently issued P7 billion bonds saw strong demand.
“The book was 1.2 times oversubscribed and majority of the bids, basically I guess by the cutoff rate, we were able to already fill the P7 billion. So it was good, strong,” Tabije said.
ALI is also set to list its P3-billion Homestarter bonds later this month under its P50 billion debt securities program.
“Last update, were about half of the issue. Unlike the usual retail bond, it takes some time for the homestarter bond to catch on in terms of the offer,” Tabije said.
Tabije explained that homestarter bonds are being issued mainly to generate homebuyers for ALI instead of raising funds for the company per se as when issuing retail bonds.
“The homestarter bond is really to generate a pipeline of homebuyers for ALI. So unlike your retail bond which you basically go to for yield, it’s really more of the opportunity to buy an Ayala land property,” Tabije said.
One of the features of the homestarter bond, according to Tabije, is the bonus credit wherein homebuyers get a 10 percent discount on the property they would eventually buy.
The P3 billion Homestarter bond will be the seventh tranche of ALI’s Homestarter Bond program since it was launched in 2006.
ALI has said the Homestarter Bonds serve as a saving tool to future homebuyers of ALI.
“It is offered by the Company as a savings tool to future buyers of ALI’s residential products, providing benefits to investors who exercise their option to apply proceeds of their Homestarter Bond as partial or full payment for an Ayala Land home,” ALI said in a disclosure earlier this year.-