Ayala Land, Inc. Lists PHP 12 Billion Fixed Rate Bonds on PDExPosted on: May 5, 2022
05 May 2022, Makati, Philippines — PDS Annual Awards special citation winner, Ayala Land, Inc. (ALI) returned to PDEx to list its PHP 12 Billion Fixed Rate Bonds. Today’s listing marks ALI’s third time using the e-Securities Issue Portal (e-SIP) since they pioneered the launch one (1) year ago. ALI was notably awarded in the PDS Annual Awards held last 25 March 2022 for being the first issuer to use e-SIP for its pre-listing and registry onboarding activities. ALI demonstrated its firm support for PDS Group’s digitalization initiative by actively participating from end-to-end beta tests all the way to again becoming a Pilot Corporate Bond Issuer to list its Fixed Rate bonds using e-SIP.
PDEx President and CEO Antonino A. Nakpil in his welcome remarks was pleased to report a great ongoing record. He said: “We happily note that ALI’s PHP 12 Billion listing today marks the point at which 2022’s level of new listings now at PHP 216.46 Billion now surpasses 2021’s total annual level of PHP 213.45 Billion.”
“Our Issuers’ demand for debt capital has been more than filled by the domestic investor segment’s supply of investible funds that have led to each of the 11 listings to date being oversubscribed at an average of 3.27 times their original amounts. And the domestic investors, retail and professional, have also been flexing in secondary market activity this year where up to 70% of total traded volume is attributed to the investor segment. These are indeed more positive metrics with which to track PDS’s original mission, the development of the stable investor base to support corporate issuers.”, further added Mr. Nakpil.
SEC Commissioner Hon. Kelvin Lester K. Lee also graced today’s listing ceremony and delivered a special message. In his message, he remarked: “Since 1991, the year Ayala Land became publicly listed, it has weathered numerous challenges, from the lingering effects of the Gulf War and the eruption of Mt. Pinatubo in that same year, to the 1997 Asian Financial Crisis, the 2008 Global Financial Crisis, and of course recently, with the COVID-19 Pandemic. Despite all these, Ayala Land continues to show its resiliency and cement its impact in our communities. With Ayala Land’s stellar track record, the Commission is optimistic that the additional funding from this offering would add value to and increase enthusiasm in our capital markets, and of course, support Ayala Land in attaining its lofty vision of uplifting the lives of our countrymen.”
Another message was delivered during the ceremony by ALI’s Deputy Treasurer, Jose Emilio B. Jamir. “This P12 billion listing is the biggest bond issuance of Ayala Land in the past eight years and the second-largest issuance in our history. This bond offering was well-received by the market, having gathered PHP 60 Billion in orders or 5x the issue size. This solid market reception led to pricing at the tight end of the spread range, manifesting the retail and institutional investors’ unwavering trust and confidence in Ayala Land’s credit and resilience.”, remarked Mr. Jamir.
Similar to this previous speeches, Mr. Jamir once again referenced his passion for biking into his message to share the value of line selection. He mentioned: The best riders study the terrain, seek smooth and fast momentum lines, and find ways to maintain these on the trail. What is also crucial in line selection is to have the skill to look ahead. For Ayala Land, we have employed this line selection strategy in our fundraising activities. We have established the plan for the year to ensure that we overcome market obstacles and smoothly reach our path to recovery. As you know, we actively pursued the early redemption of our high-cost borrowings in the past two years and replaced it with lower fixed interest rates in anticipation of this rising interest rate environment.”
Mr. Jamir also gave us a sneak-peak into ALI’s plans. “To secure our path further, we are embarking on another bond transaction that we will announce and file with the SEC in the coming days.”, said Mr. Jamir as he ended his message.
Since ALI pioneered e-SIP’s launch a year ago, a total of nine (9) other issuers have followed suit in 2021 alone and benefited from the digitalization processes, reduction of storage costs, and have saved paper. By the end of 2021, e-SIP processed 19,864 client accounts and saved the equivalent of 79,000 sheets of paper. The PDS Group continually aims to have more issuers benefit from the utilization of e-SIP
This 11th admission for 2022 brings the year-to-date total of new listings and enrollments to PHP 216.46 Billion, pushing the total level of tradable corporate debt instruments to PHP 1.36 Trillion issued by 53 companies, comprised of 191 securities.