PROPERTY developer Ayala Land Inc. is raising P30 billion from the debt market to fund its corporate requirements and refinance its short-term loans.
The company’s board has approved the capital-raising activity when the country’s second-largest property developer will sell up to P20 billion in either retail bonds, corporate notes or bilateral-term loans that will have a maturity of 10 years.
The offer will come from the company’s P50- billion debt securities program under the shelf registration it applied with the Securities and Exchange Commission. The proceeds of the offering will be used to partially finance its corporate requirements.
The company will also raise an additional P10 billion in short-dated notes with a tenor of 21 months. The proceeds of the offering will be used to refinance its short-term loans.
Ayala Land posted a net income of P20.9 billion in 2016, 18 percent higher than the previous year’s P17.63 billion.
Consolidated revenues reached P124.6 billion, 16 percent higher from the previous year’s P107.18 billion on the back of the stable growth of its property-development business, balanced with the steady performance of its leasing portfolio.
Property-development revenues grew 17 percent to P79.2 billion, driven by the steady traction of its residential and office for sale segments, complemented with commercial and industrial lot sales. Commercial-leasing revenues grew 8 percent to P26.6 billion, as its portfolio of malls, offices, and hotels and resorts continues to expand within the Philippines. “Year 2016 marked another banner year for Ayala Land. We achieved a higher level of profitability coming from the sustained growth of our estates and core businesses. Further, we executed our investment program to ensure continued growth in the coming years,” the company said.
The company launched P61.5 billion worth of residential and office for sale products in 2016 through its five residential brands. Its residential sales grew 3 percent in 2016 to P108 billion.