ALI to raise P50 B in debt capital

Property giant Ayala Land Inc. (ALI) is raising up to P50 billion in debt capital this year to refinance maturing obligations and partially fund general corporate requirements.

- RICHMOND MERCURIO

ALI said the amount would be raised through the issuance of retail bonds and corporate notes for listing on the Philippine Dealing and Exchange Corp., as well as execution of bilateral term loans.

"We intend to access both our bank lines as well as the debt capital markets, roughly 50-50. Of the total of P50 billion, P25 billion will be to finance our capital expenditures this year and the other P25 billion is for refinancing of maturing debt," ALI chief finance officer Augusto Bengzon said.

"The strategy is to access our longterm bank lines as well as the debt capital markets in the second half of the year as we anticipate that by that time, rates should start trending

downwards. So we have that flexibility to trigger a major part of our financing program in the second half of the year when hopefully, rates would have moderated. We want to borrow long-term fixed rate. It is important for us to try to get the financing at the opportune time," he said.