Ayala Land lists first tranche of P50-B bonds

AYALA Land, Inc. listed its P3-billion fixed-rate bonds due 2031 at the Philippine Dealing & Exchange Corp. (PDEx), marking the listed property developer’s second listing at the debt capital markets this year.

The bonds, which has a rate of 4.0776% per annum, comprise the first tranche of the company’s newly approved P50-billion shelf-registered fixed-rate, peso-denominated bonds. The balance will be issued in tranches within three years.

“This issuance together with another long-term loan, which we are set to complete this week, will bring us closer to concluding our P50-billion debt refinancing program — the largest-ever as we continue to bring down our cost of debt and lengthen our maturities,” Ayala Land Deputy Treasurer Jose Emilio B. Jamir said during the listing ceremony on Tuesday morning.

PDEx President and Chief Executive Officer Antonino A. Nakpil said the issuance, by “Ayala Land standards,” is “bite-sized.”

Meanwhile, Mr. Jamir said the company’s 10-year bond “holds a distinction of being the longest corporate bond ever offered since the pandemic began.” The tenor is aligned with the period the company has set for the development of its projects.

The P3-billion fixed-rate bonds is the 17^th listing at the PDEx this year, bringing the total new listings to P175.99 billion. The total outstanding listed corporate bonds stand at P1.35 billion, comprising of 195 securities issued by 54 companies.

Ayala Land said its offer was “well-received by the market,” resulting in a P3-billion order book.

“The successful offering of this 10-year bond has shown that there are fixed-income investors that are keen for longer-term instruments,” Mr. Jamir said, adding that the offer has a repriceable feature.

On Tuesday, shares of Ayala Land at the stock market went up by 0.28% or 10 centavos to close at P35.95 each. — Keren Concepcion G. Valmonte