Real estate giant Ayala Land, Inc. (ALI) has successfully listed its new P3 billion 4.0776 percent p.a. fixed rate bonds in a virtual ceremony at the Philippine Dealing and Exchange Corporation (PDEX).
The 10-year bond listing due 2031 is part of ALI’s newly approved third shelf registration program amounting to P50 billion.
The issuance features an innovative repriceable feature that is similar to the structure of the company’s issuance in 2018.
“This bond is part of our overall and largest ever P50 billion debt refinancing program, as we continue to bring down our cost of debt and lengthen our maturities,” said ALI Deputy Treasurer Jose Emilio B. Jamir.
He added that, “To the benefit of institutional and retail investors alike, this has been the longest corporate bond offered in the market since the pandemic began.” With ALI’s listing, the total outstanding listed corporate bonds on PDEX is now at P1.35 trillion – providing investment outlets for the investing public especially amidst the global pandemic.
ALI’s corporate bonds provide investors with several advantages, chief among them is a source of stable and predictable interest income. On the other hand, it helps corporations to diversify their funding sources.
“The successful offering of this 10-year bond has shown that there are fixed income investors that are keen for longer-termed instruments,” said Jamir.
He noted that, “This longer tenor is well aligned with the gestation or development period of our projects since we are not just involved in developing single condominiums or villages, rather in building large-scale, integrated, mixed-use estates that that generate long-term value over time.”
With the issuance of the 10-year bond, ALI is nearing the completion of its P50 billion debt refinancing program by maintaining access to both the debt capital and bank markets. ALI was the first corporate bond to list in 2008.