Thursday, 29 January 2009

Philippines' Ayala Land gets P2.4-b funding for expansion

By Jenniffer B. Austria
The Manila Standard
http://www.manilastandardtoday.com/?page=business2_jan29_2009

Property giant Ayala Land Inc. yesterday secured a P2.38-billion financing facility to help fund the company’s capital expenditures this year.

The company currently has P8 billion in cash.

Ayala Land chief finance officer Jaime Ysmael, in a disclosure to the stock exchange, said the facility, which is in the form of privately placed fixed rate corporate notes issued by the company, would come in three tranches with maturities of five, seven and 10 years.

“The proceeds are intended for general corporate purposes, including capital expenditures,” Ayala Land said.

Joint lead managers for the facility were Insular Investment and Trust Corp., First Metro Investment Corp. and BPI Capital Corp.

Ayala Land earlier said it would spend P20 billion in capital expenditures this year and had no plans to slow down in the construction of real estate projects despite the expected economic downturn.

Ayala Land president Jaime Ayala earlier said the company would remain aggressive with its expansion plans and saw growth in the office sector as well as housing projects, especially those catering to the low- and middle-income groups.

Funding for the P20-billion capital expenditure will be internally generated and could be sourced from peso borrowings.

The company said it was prepared to make adjustments on its strategies and planned to focus on horizontal housing developments and residential condominiums that offer lower price points to buyers.

The company said Avida Land, which caters to the low-income segment, and Alveo Land, which is for the middle-income market, continued to show strong growth in sales.

Meanwhile, Ayala Land will push through with the redevelopment of Glorietta mall and add several floors of office buildings as well as a three-star hotel on top of the shopping center.

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