• Ayala Land to raise P50B from debt notes next year

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    To fund 50% of 2016 capex

    Ayala Land Inc. (ALI) intends to raise up to P50 billion in fresh funds next year to cover 50 percent of its capital expenditure (capex).

    Its board of directors has approved the issue of corporate bonds and commercial papers worth P50 billion subject to regulatory approvals.

    “Our board of directors, at its regular meeting held this afternoon, approved the filing with the Securities and Exchange Commission of a shelf registration of up to P50 billion and the issuance therefrom in 2016 of up to P20 billion in corporate bonds, and up to P10 billion in commercial papers,” the company said in a disclosure to the Philippine Stock Exchange on Tuesday.

    “Proceeds, net of issue-related costs, will be used for general corporate purposes. The bonds and commercial papers will be sold through general public offerings,” it added.

    ALI Senior Vice President Jaime Ysmael earlier told reporters that the company is looking at funding its P85 billion to P90 billion capex next year with 50 percent from equity issue, and 50 percent from the debt market.

    While the 2016 capex is not yet final yet, it is expected to fund new project under the public private partnership (PPP) initiative, particularly the P4-billion Integrated Transport System-South project (ITS-South).

    The Department of Transport and Communications (DOTC) awarded the ITS-South project to ALI just last month, a 5.57-hectare property within the FTI complex in Taguig City, which is being developed by the Ayala property group as the new central business district Arca South.

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