Property developer Ayala Land Inc. is raising P7 billion in fresh funds using the last tranche of a P15-billion bond offer that secured regulatory approval last year.
The company filed its amended registration statement with the Securities and Exchange Commission on Thursday, which indicated that proceeds of the bond offer are expected to fund its record capital expenditures (capex) for 2015.
Ayala Land started the bond offer on Thursday, and it plans to complete it by April 22. The bond will be officially issued by April 29.
The paper carries a tenor of seven years, with an interest rate of 4.05 percent per annum, with call option after five years and six months after the issue date, as well as on the sixth year after issue date.
The bond will be listed in the Philippine Dealing & Exchange Corp.
Early this month, company officials said the bond proceeds will be used to partially fund its P100-billion capex for the year.
Ayala Land also said it is planning to borrow P15 billion to P20 billion to finance its capex.
“As always, we are looking at properties for our landbank. About 20 percent to 35 percent of our capex is to replenish our landbank. Right now we are in 45 growth centers in the country. Our target is to increase this to 78 growth centers,” Bobby Dy, Ayala Land president, said earlier.