THE board of directors of Ayala Land Inc. has approved the company’s plan to issue P5-billion worth of Homestarter Bonds, through which the property giant hopes to raise funds for its residential projects.
In a meeting held on Tuesday, the board of the listed real estate blue chip approved the issue up to P5 billion of the bonds in one or more tranches. The bonds will have a term of three years.
“Net proceeds shall be utilized for general corporate purposes,” ALI told the local bourse, adding that the bonds will be sold through a general public offering to retail investors.
ALI first introduced the homestarter bonds in 2006, a fund-raising scheme through which subscribers have the option of using the principal amount of the bonds,
including interest, as full or partial downpayment for ALI’s residential projects.
This is the seventh issue by ALI of such financial instrument. The company issued the sixth homestarter bonds in May 2013 through which it raised about P2 billion.
For the first quarter of 2014, ALI reported a 25 percent year-on-year increase in net income to P3.46 billion from P2.8 billion.