ALI to raise P45 B in debt capital

Real estate giant Ayala Land Inc. is planning to raise P45 billion from in debt capital to partially finance general corporate requirements and refinance maturing debt.

In a disclosure to the Philippine Stock Exchange, the firm said the amount will be raised through the issuance of retail bonds or corporate notes for listing on the Philippine Dealing and Exchange Corporation, or through the execution of bilateral term loans.

On top of this, ALI said its Board of Directors has approved its filing with the Securities and Exchange Commission of a new 3-year shelf registration of up to P50 billion of debt securities.

ALI reported a 55 percent jumo in net income to P13.3 billion in the first nine months of the year as consolidated revenues increased 19 percent to P86.3 billion.

The firm said growth came as business and consumer activity accelerated under the Philippines’ reopened economy.

In the third quarter, the company posted a net income of P5.3 billion, 107 percent higher year-on-year, while consolidated revenues reached P33.0 billion, 39 percent more than the same period last year.

“The acceleration in business and consumer activity during the period enabled us to generate significant earnings growth,” said ALI President and CEO Bernard Vincent O. Dy.

He added that, “The demand for our residential products remained resilient and local consumption continues to be robust despite geopolitical and macroeconomic challenges. We believe the strength of our local market will provide the backbone to sustain the growth of our diversified real estate portfolio for the rest of the year.”

ALI’s property development revenues increased by 7 percent to P55.2 billion, led by commercial lot sales and construction progress in its residential projects. A total of P21.1 billion was recorded in the third quarter, a growth of 21 percent year-on-year.

In commercial leasing, revenues accelerated by 64 percent year-on-year to P23.3 billion with the reinstatement of full mall rental rates, the contribution of new leasing spaces, and higher hotel room rates.

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The article was originally published in Manila Bulletin and written by James A. Loyola.