Ayala Land offers bonds as investment, downpayment

MANILA, Philippines – Property giant Ayala Land Inc. has started offering a new series of “Homestarter” bonds that allow investors to participate with a minimum investment of P50,000 to a high of P5 million that they can they apply against their home purchases.

In a press briefing on Friday, May 10, Ayala Land treasurer August Bengzon said the 3-year bonds will mature in 2016 with an annual interest rate of 4%, higher than the Bangko Sentral ng Pilipinas’ Special Deposit Account or a comparable 3-year government security.

Ayala Land has issued a total of P2 billion fixed-rate bonds in this newest tranche. The pioneering homestarter bonds in October 2012 amounted to P1 billion, and was issued at 100% of face value with a fixed rate of 5$.

Proceeds from the sale of the bonds will be utilized for “general corporate purposes” of the firm, Ayala Land added.

As in previous issues, bondholders will earn a bonus credit through the program. This is a special discount on the net selling price of various Ayala Land properties should the bondholder decide to apply the principal amount and accrued interests as a downpayment to buy an Ayala Land property.

The company has hired BPI Capital Corp., Chinabank, and PNB Capital to be the joint underwriters for the bond offering.

“We selected these underwriters as they have strong consumer banking units which will be in a position to provide the appropriate housing loans and support the bondholders who decide to purchase an Ayala Land property,” Bengzon said

Ayala Land projects under its various brands – Ayala Land Premier, Alveo, Avida, Amaia, and BellaVita – may be availed using the savings and
bonus credits generated from the Homestarter Bond.

The offer period started on May 8 and will run until May 24.

Issue date is on May 31, 2013. – Rappler.com