Ayala Land Inc. (ALI) is looking to issue at least P5 billion worth of commercial papers next year in line with its capital expenditure funding, a company official said.
“One other series that we haven’t tapped into yet is the commercial paper. We may have the commercial paper series next year,” ALI Debt Management Head Ricardo Ulysses Tabije told reporters in a recent interview.
The minimum float for commercial paper is around P5 billion, but Tabije did not disclose the exact amount of the issuance. “It all depends on what we see in the market.”
The tenor of the short-term commercial papers is one year, Tabije noted.
This year alone, ALI listed P22 billion worth of retail bonds on the Philippine Dealing and Exchange(PDEx), which forms part of the three-year Debt Securities Program worth P50 billion and was approved by the Securities and Exchange Commission(SEC) last March.
The program consists of three tranches – P7 billion, P8 billion and P7 billion – of fixed retail bonds, and P3 billion of Homestarter bonds.
“As of today, we have already raised P22 billion. So we have the fixed rate bond series, the Homestarter bonds, and the commercial paper.
“This year basically, this is it for the retail bonds,” Tabije told reporters at the sidelines of ALI’s P7-billion bond listing earlier this month.
ALI earlier noted the proceeds from the P50-billion debt securities program will partially fund the capital expenditures as well as general corporate purposes.
The proceeds from the commercial paper issuance will also be for capex funding, Tabije said. “Yes, for capex and also to complement our short-term lines, which we have in place.”
“But we are still on the drawing board right now. So we’re still finalizing the capex program, but ALI parent [Ayala Corporation] has always raised funds through the debt market,” Tabije noted.