Business Mirror 8/5/2008

Ayala Land Inc. (ALI) started yesterday the sale of its bonds at a fixed rate of 8.75 percent. The offering will end on Friday.

The bonds, which will fetch P4 billion in proceeds, will be issued at 100-percent face value. Minimum subscription is P50,000 and in multiples of P10,000.

BPI Capital Corp., HSBC and Land Bank of the Philippines are the joint lead managers and underwriters of the issuance.

ALI, considered as the largest property developer in the country, said the bonds appeal to retail investors seeking options for their long-term savings. The bonds would be listed at the fixed-income exchange.

The company will use the money to support its growth plans focused on launching more residential units and expanding its office segment and shopping centers.

The bonds earlier got the highest rating possible from Philippine Rating Services Corp. (PhilRatings).

The ratings agency assigned a “PRS Aaa” mark on the issuance, and explained the rating “is given to debt obligations with the smallest degree of investment risk.”

PhilRatings cited ALI’s strong sales “with substantially all projects reporting high take-up rates.”

It also noted ALI’s remarkable track record of consistent profitability despite the peaks and valleys of the real-estate industry cycle.

Notwithstanding prevailing issues and looming uncertainties, PhilRatings affirmed the company’s plans for sustained growth through its residential developments, shopping centers and corporate business line.

Despite global weakness in the financial market, ALI continues to perform well on the back of a strong domestic market.