ALI lists its largest bond issuance worth P33 B

Published July 6, 2022, 3:03 PM

by James A. Loyola

Real estate giant Ayala Land, Inc. (ALI) has raised a total of P33 billion from its largest bond issuance to date and listed these securities at the Philippine Dealing and Exchange Corporation (PDEX).

In a disclosure to the Philippine Stock Exchange, the firm said it listed its new fixed-rate bonds due 2024, 2027, and 2029.


The Series A bonds due 2024 carry a coupon rate of 4.3969 percent per annum (p.a.); Series B due 2027 with a coupon rate of 6.2110 percent p.a.; and Series C bonds due 2029 with a coupon rate of 6.8045 percent p.a.

The 2, 5, and 7-year bonds are ALI’s largest issuance to date and its second for the year in the local capital debt market.

The company also issued P12-billion 6-year fixed-rate bonds with a coupon rate of 5.8086 percent p.a. last May.

“These twin offerings used the same set of financials which allowed for quicker execution,” said ALI Deputy Treasurer Jose Emilio B. Jamir.

He added that, “With this latest bond offer, we raised P45 billion in debt capital, representing a 90 percent utilization rate of our P50 billion shelf registration in less than a year.” The proceeds of the offering will be used for refinancing, funding general corporate requirements, and capital expenditures for upcoming real estate projects.

“This could only be a positive signal of the corporate sector’s continued thrust for economic revival even in the face of stresses brought on by global events,” said PDEx President and CEO Antonio Nakpil.

He noted that, “Of course, this thrust should be led by a firm that has surpassed the ebbs of past cyclical downturns and crisis in its 34-year existence individually and 188 years in history as part of a conglomerate. Such institutional memory would be important for continued corporate resilience, especially with the unfolding challenges.”

ALI’s total outstanding listed bonds are now at P120.3 billion, representing 8.9 percent of the total outstanding listed corporate bonds on PDEx.