Ayala Land to issue up to P21-B long-term bonds


Real estate giant Ayala Land Inc. (ALI) is set to issue up to P21 billion in long-term corporate bonds after securing approval from its board.

Moreover, the board of directors of the property developer also approved the incorporation of the firm’s wholly owned subsidiary, which will be assigned to manage the operations of a golf course in Muntinlupa City.

In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, ALI reported that its board approved the issuance of up to P21 billion in corporate bonds.

The bonds, which are to be registered with the Securities and Exchange Commission, will have tenors of seven, 10, 20 and 25 years.

The developer further mentioned that proceeds from the issuance will be used for general corporate purposes.

The bonds will be sold through a general public offering.

In March, ALI raised P12.2 billion via a top-up equity placement, of which the proceeds will be used to finance its expansion program.

According to ALI, it will use the proceeds of the share placement primarily to fund its next phase of development, which will enable it to sustain its high growth trajectory.

The company said that it has identified significant land banking opportunities amounting to approximately P20 billion, and earmarked P46 billion for project completion as part of its P66-billion capital expenditure program for 2013.

ALI, in its earlier disclosure to the PSE, specified that it has completed a placement of 399.5 million of its common shares, which is equivalent to a 3.6-percent discount on the five-day volume-weighted average price of its stocks.

The placement was conducted through an overnight bookbuilt offering structured as a top-up placement, wherein all the proceeds will be received by ALI. UBS Investment Bank acted as sole bookrunner and placement agent in connection with the placement.

Meanwhile, in the same corporate filing posted on Wednesday, ALI disclosed that its board also approved the incorporation of a

wholly owned subsidiary, Verde Golf Development Corp., which
will oversee the operations of Southvale Golf Course.


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