ALI to fund P100-B capex via homestarter bonds

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Ayala Land Inc., the property arm of conglomerate Ayala Corp., is likely to issue P1-billion to P2-billion worth of homestarter bonds to partly fund a P100-billion capital expenditure this year.

This is the second time this year for AL I to tap the bond market for finance after completing a P7-billion bond offer last month as part of the plan to source P15 billion to P20 billion beyond corporate coffers.

“The homestarter bonds we’ll more likely [do it]within this semester. It is a maximum of P1 billion to P2 billion. Total planned borrowing is still in the P15 billion to 20 billion this year,” Ysmael said.

On the other hand, ALI President and Chief Executive Officer Bernard Vincent Dy said the company sees the economy growing stronger over the next few years, bolstered by sectoral growths that can also benefit the company.


“It still looks good. I mean, the economy continues to grow. I think the confidence is quite strong. This is again across the board whether residential, shopping centers, BPOs [business process outsourcing]as well as tourism particularly domestic tourism. We continue to maintain a positive outlook for the rest of the year,” ALI’s president noted.

Regarding the plans for 2020 to 2040, he said the company is “on track” to grow profits by 20 percent a year to P40 billion by 2020 from P11.7 billion in 2013.

This year the company has allotted P100 billion on spending, which will partly be sourced from the P16-billion share placement in February as well as internally-generated cash and P15 billion to P20 billion from various debts.

The company recorded a 19 percent increase in net income in the first three months of the year to P4.1 billion from P3.5 billion a year earlier. Consolidated revenues increased by 10 percent to P25.1 billion from P22.7 billion on the back of robust property development, commercial leasing operations and higher number of integrated mixed-use townships nationwide.

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