AYALA Land Inc. (ALI) recently listed on the Philippine Dealing and Exchange Corp. (PDEx) P3.1-billion worth of fixed-rate notes aimed at qualified institutional investors.
This is the second tranche of a uniquely structured financial instrument that was introduced in partnership with China Bank Capital Corp. in July this year. BDO Capital joins its affiliate as joint lead underwriter and joint book runner for this issue, which carries a coupon of 3.25 percent per annum and a 2019 maturity. The initial issue amounted to P4.3 billion, bringing ALI’s total enrollment for the notes to P7.4 billion.
“We look forward to further issuances in the future. We are currently at the short end of the curve, but we foresee that we can move this up to longer tenors,” said Augusto D. Bengzon, ALI CFO and group treasurer. “We anticipate that other issuers may choose to adopt this funding alternative, and trust that mutual funds, UITFs [unit investment trust funds] and other qualified buyers will actively invest in this novel instrument.”
During the listing ceremony, Philippine Dealing System Holdings Corp. CEO and President Cesar B. Crisol referred to ALI as the company’s “most consistent, constructive and active member of our issuer community.” “We are excited by the launch of this class of securities and look forward to moving beyond the inaugural instruments and having the enrollment board host longer-term issues directed at a community of professional investors,” Crisol added. “We thank all, especially ALI for its pioneering and persistent presence in the organized market.”
ALI’s latest fixed-rate notes offering is PDEx’s 27th corporate listing for the year, which brings its volume of new listings up to P175.19 billion, an increase of 68 percent compared to the same period last year.