MANILA – The Philippines’ Ayala Land Inc. (ALI) said it will issue the 5th tranche of its Homestarter Bond worth up to P3 billion as the company’s Board of Directors approved Tuesday a “strategic” alliance with the Ortigases.
In a disclosure with the Philippine Stock Exchange, the company said the debt paper will have three-year tenor and its issuance is still “subject to the registration requirements of the Securities and Exchange Commission (SEC).”
The Philippine News Agency reported that the property developer has tapped BPI Capital Corp., China Banking Corp., PNB Capital & Investments Corp., and RCBC Capital Corp. as underwriters for the debt issuance.
The proceeds of the bond sale will be used “for general corporate purposes,” the disclosure said, according to the state media report.
It said based on the disclosure, ALI’s Board of Directors have approved the company’s partnership with the group of Ignacio R. Ortigas, which allowed Ali to participate in Ortigas & Company Ltd Partnership (OCLP) Holdings Inc.
Earlier, ALI announced that it would allocate an initial amount of P15 billion for its “strategic alliance” with OCLP Holdings for the development of its properties in Pasig, Mandaluyong, Bonifacio Global City and the Makati CBD.
The tie up would expand Ayala Land’s operations to areas outside Metro Manila as the company targets to bring in inputs of its expertise in constructing large scale buildings.
In the first quarter this year, ALI posted a 31 percent rise in net income to P2.13 billion and 17 percent increase in revenues to P12.39 billion.
Gains from sales reached a record-high of P19.3 billion, year-on-year expansion of 49-percent.
ALI declared a cash dividend of P0.10385223 per outstanding common share, up by 42 percent from the P0.0733 per share declared by the company last year.
Record date of the cash dividend was set on Sept. 17, 2012 while payment date is on Oct. 8, 2012. (Joann Santiago)
20