SEC clears Ayala Land’s P50-B shelf registration of bonds

THE Securities and Exchange Commission (SEC) on Thursday cleared the shelf registration of P50 billion worth of debt securities to be issued by Ayala Land, Inc.

In a media release, the commission said it had approved in an en banc decision the registration statement of Ayala Land covering bonds that may be issued in one or more tranches within three years.

The regulator said the company will offer up to P12.25 billion of five-year and 10-year bonds with an oversubscription option of up to P5 billion for its first tranche.

Additionally, Ayala Land will offer the fourth and final tranche of its shelf-registered debt securities program, which was approved in 2021, with a bond offering of up to P4.75 billion.

“Assuming the oversubscription option is fully exercised, Ayala Land could net up to P21.73 billion from the offering,” the SEC said.

Proceed from the bond offering will be used to refinance the company’s short-term loans and to fund its capital expenditures.

The bonds will be offered from June 14 to 20 at face value and will be listed on the bond exchange on June 27, according to the SEC.

During the first quarter, Ayala Land’s attributable net income rose by 42% to P4.5 billion from P3.17 billion in the same period last year, while revenues jumped by 26% to P30.9 billion due to higher contributions from all its business lines.

Commercial leasing revenues amounted to P10.1 billion, up 57% on improved mall tenant sales, stable demand for new office spaces, and a boost in hotels and resorts.

Ayala Land’s top line for property development increased by 8% to P17.1 billion due to higher residential completions, bookings, and the sale of office units.

Its residential sales reservations rose by 15% to P27.7 billion due to resilient demand despite elevated interest rates. It launched three new projects during the January-to-March period amounting to P8.6 billion.

On Thursday, Ayala Land shares fell by 1.9% or 50 centavos to P25.80 apiece. — AHH