Ayala Land to issue P8 billion worth of bonds

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(Source: Business World | March 13, 2019)

Ayala Land, Inc will be issuing P8 billion worth of fixed rate bonds this year to partially finance its hotel, mall, and office projects.

The bonds will have a seven-year tenor, and will be the first issuance from its P50-billion debt securities program (DSP) registered with the Securities and Exchange Commission.

Ayala will use the funds raised from the bonds for several projects lined up for the year, including Seda Hotel in Manila Bay, Seda Bonifacio Global City Expansion, Arca South and the Taguig Integrated Terminal Exchange in Taguig, as well as Vertis North Corporate Center Tower 3 in Quezon City.

The fresh capital will also be used to finance projects in the provinces, namely Bacolod Capitol Corporate Center and Capitol Central Mall in Bacolod, and Ayala Malls Central Bloc in Cebu.

This is the second time ALI made use of the SEC’s debt securities program. The first registration also amounted to P50 billion and was issued in a span of three years from March 2016 to October 2018.

Local debt watcher Philippine Ratings Services Corp. (PhilRatings) assigned the bonds a PRS Aaa rating, the highest in its credit rating scale. This indicates that the company has an “extremely strong” capacity to meet its financial commitments.

The rating also carries a stable outlook, which means it is unlikely to change in the next 12 months.

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