Ayala Land said in a filing with the Securities and Exchange Commission it would issue P10 billion worth of bonds as the sixth tranche of its P50-billion bond-shelf registration program approved in 2019.
It hired five banks including BDO Capital and Investments Corp., BPI Capital Corp., ChinaBank Capital, East West Bank and SB Capital as joint lead underwriters and book runners of the offering.
Ayala Land already issued five tranches of fixed-rate bonds and raised P37.25 billion out of its P50-billion bond securities program.
It said the net proceeds from the new offering would be used to refinance short-term loans that would be drawn to finance the early redemption of the P8-billion fixed-rate bonds due 2025, acquisitions of properties in Laguna, Cavite and Quezon City and other general corporate purposes.
Ayala Land reported a net income of P8.7 billion in 2020, down 74 percent from the 2019 level as the pandemic hurt its mall, residential and hotel businesses.
The company said that for 2021, it was expecting its businesses to recover and allocated P88 billion in capital expenditures, up from P63.7 billion spent in 2020.
It also targets to launch P100 billion worth of residential projects this year.
“Ayala Land believes that the Philippines continues to be fundamentally strong, having remained resilient amid the challenges in the global economy. As the Philippines is experiencing the COVID-19 global pandemic, Ayala Land has acknowledged this as a prominent risk which affected its business in 2020 with spillover effects to 2021,” it said.
The property firm said the lessons from the pandemic would enable it to improve business continuity plans moving forward.
“The company remains watchful of relevant macroeconomic indicators and geopolitical risks that may potentially impact the business environment. It will maintain a healthy balance sheet which will enable it to weather the risks and capture opportunities once the environment improves,” it said.
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