Tuesday, July 8, 2014

Ayala to issue P5bn worth of bonds

Ayala Land has announced that it will be issuing up to P5 billion worth of Homestarter bonds by the third quarter of 2014, with a term of three years, at a four percent per annum coupon rate. These bonds are part of the company's pioneering program that assists families in buying homes. The program was first launched in 2006, making it the third time Ayala offer such bonds.

Ayala Land has announced that it will be issuing up to P5 billion worth of Homestarter bonds by the third quarter of 2014, with a term of three years, at a four percent per annum coupon rate.

The company will float up to P3 billion of the bond. This will be markedly larger than the P2 billion bond offered in May last year. No tenor or maturity date was given as yet because the company is still finalizing the product.

Ayala Land's debt paper is different as it can be used for down payment to buy an ALI-development and discounts on a variety of property products. Minimum investment is at P50 000. According to officials, since its launch, the bonds have generated some P1 billion in sales for the company.

Ayala Land is also preparing to launch P20 billion bonds in the next two months, with P5 billion of the bonds for Cebu Holdings. P15 billion of the bond will be for Ayala Land itself, to cover its planned P70 billion capital expenditures for the year. Its debt will have a tenor of 11 years, while Cebu Holdings' debt will have a tenor of seven years. Both issuances will be in the form of retail bonds, and will be listed with the Philippine Dealing and Exchange Corporation. 


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