Performancing Metrics

Ayala firms list P10B worth of bonds on PDEx

Written by Elizabeth Sanchez-Lacson - Philippine Daily Inquirer Thursday, 21 August 2008 09:52

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MANILA, Philippines—Conglomerate Ayala Corp. and its real-estate arm Ayala Land Inc. on Wednesday listed P10 billion worth of bonds on the Philipine Dealing and Exchange Corp. (PDEx), the country’s fixed-income securities exchange.

Ayala listed P6 billion worth of fixed-rate bonds due 2012 with a coupon rate of 6.825 percent a year on the bond exchange. Ayala Land listed P4 billion worth of fixed-rate bonds due 2013 with a coupon rate of 8.75 percent a year.

Listing on the PDEx will pave the way for the trading of the bonds in the inter-dealer and public markets, highlighting the advancement of the secondary capital market for corporate debt.

“The advantage [of listing] is greater transparency and better pricing for bond holders,” Ayala Land chief financial officer Jaime Ysmael said at the sidelines of the listing ceremonies in the PDEx office in the Makati business district.

PDEx trading volume for government securities reached P36.68 billion in July, up 42 percent from P25.79 billion in June.

In June, rising interest rates dampened investors’ appetite for bonds, as reflected in a slight drop in volume to P25.79 billion from P26.04 billion in May. In July, however, trading volume started to expand as interest rates stabilized and reverted to a declining trend.

Ayala Land’s fixed-interest bond will be issued at 100 percent of face value. Minimum subscription is P50,000, with multiples of P10,000 thereafter, which would appeal to retail investors seeking options for their long-term savings.

Ayala Land treasurer Augusto Bengzon earlier said the exercise would support the company’s growth plans focused on launching more residential units and steadily expanding its office property segment and shopping center lines.

Ayala last year raised P6 billion from a five-year peso bond float, with proceeds used for refinancing peso- and dollar-denominated debts and for general working capital. Over the years, Ayala has shifted its debt mix in favor of pesos.