Ayala Land Lists PhP 3 Billion Homestarter Bonds on PDExPosted on: October 19, 2016
This event marks several “firsts” for ALI as it is now the first corporate bond Issuer to come to the PDEx secondary market four times in a single year, demonstrating how to optimize the shelf-registration facilities of the SEC. It is also the first Issuer to list a bond with an American style put option for holders to use redemption proceeds for lot purchases.
With this tranche, ALI’s total outstanding listed issues stands at PHP 76 Billion or 13% of the outstanding listed bonds on PDEx; while the Ayala Group’s total outstanding listed issues amount to PHP 143 Billion or 24% of the overall outstanding listed bonds on PDEx.
“We note the uniqueness of this instrument which ALI developed and introduced to the market; an investment instrument that serves as a savings tool for future buyers of ALI’s residential products. It is remarkable how this instrument serves to accustom ALI’s client community to the benefits of a medium term investment outlook as the logical prelude to a longer term investment view required for a real estate purchase,” said PDS Group President and CEO Cesar B. Crisol.
Ayala Land Senior Vice President and CFO Jaime E. Ysmael remarked: ““Today’s listing is very special to us. Not only is it another milestone for the Ayala Land Homestarter Bond program, but it comes quite timely as we celebrate this year the 10th anniversary of the first Homestarter Bond issue back in 2006. With our customers foremost in our minds, the Homestarter Bond was developed by ALI to provide potential homebuyers with an investment instrument that allows them to save up for downpayment for the Ayala Land property they aspire for. It’s innovative structure showcased (i) a then monthly serial issuance over a three-year period, (ii) the Early Downpayment Application (EDA) feature, which allowed holders to apply the bond to downpayment for an Ayala Land property during the life of the bond or at maturity, and (iii) the Bonus Credit feature, a unique incentive equivalent to 10% of bond principal which is given to bondholders who exercise their EDA option. From a P169M maiden issue in 2006, ALI has thus by far issued to the market a cumulative P9.7B of Homestarter Bonds, including this P3B issuance and listing today, which is the largest to date. Since its introduction, a total of P1.68B of residential sales is attributed to Homestarter Bond series.”
This tenth listing for the year: the PhP 3 Billion ALI Homestarter Bonds Due 2019 increases the year-to-date total of new listings to P74.69 Billion and brings the total level of tradable corporate debt instruments to PhP 601.80 billion issued by 37 companies, comprised of 110 securities.
The event was held at the PDS Group Assembly Hall and was graced by ALI Officers including Senior Vice President and CFO Jaime E. Ysmael, Vice President and Treasurer Augusto D. Bengzon, and Senior Division Manager and Head of Debt Management Ricardo Ulysses C. Tabije.
Representatives from the issue participants who attended the event are BPI Capital Corporation Managing Director Eric Roberto M. Luchangco, China Bank Capital Corporation Managing Director and Investment Banking Group Head Virgilio O. Chua, and PNB Capital and Investment Corporation President Gerry B. Valenciano. #