ALI raising up to P22 B from bond issuance

Property giant Ayala Land Inc. is planning to raise up to P22 billion from the issuance of bonds that will come from its existing P50-billion debt securities program as well as its new P50 billion 2023 program.
In a disclosure to the Philippine Stock Exchange, the firm said it has filed a registration statement with the Securities and Exchange Commission for the shelf registration of up to P50 billion under a new securities program.
ALI said up to P12.25 billion worth of bonds will be issued as the first tranche of the 2023 Program and up to P4.75 billion in bonds will be issued as the fourth and final tranche under its existing P50 billion Debt Securities Program registered in 2021.
It added that there will be an oversubscription option of up to P5 billion which, if exercised, will form part of the first tranche to be issued under the Company’s 2023 Program.
Philippine Rating Services Corporation (PhilRatings) has assigned an its highest issue credit rating of PRS Aaa, with a Stable Outlook, to ALI’s proposed bond issuance of P17.0 billion, with an oversubscription option of up to P5.0 billion.
The proceeds of the proposed bond offering will be used to partially fund capital expenditure requirements and debt maturities.
PhilRatings also maintained its issue credit rating of PRS Aaa, with a Stable Outlook, for ALI’s outstanding bonds amounting to P117.25 billion.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk and the obligor’s capacity to meet its financial commitment on the obligation is extremely strong. A Stable Outlook indicates that the assigned rating is likely to remain unchanged in the next 12 months.
PhilRatings said the key considerations in the assignment of the ratings and the corresponding outlook include ALI’s well-diversified portfolio, complemented by strong brand equity, and an experienced and competent management team and synergies with the Ayala Group.
Also taken into consideration is the continued rebound in ALI’s earnings with the re-opening of the economy, supporting healthy cash flows, and its sound capital structure and well-managed debt portfolio.