Ayala Land Inc. (PSE: ALI) has mandated BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp., and SB Capital Investment Corp. (collectively, the Joint Lead Underwriters and Bookrunners), to manage a public offer and issuance by the company of 5-Year Fixed-rate Bonds in the aggregate principal amount of up to P6,250,000,000. The bonds are expected to be listed and traded in the Philippine Dealing & Exchange Corp. (PDEx).
As part of the offer, the company intends to extend the invitation to debt securities investors that currently hold outstanding principal amounts of Ayala Land’s 4.625% bonds due 10 October 2020 (ISIN/Security ID ALIFXBND2020; PDS Series Code ALI 20 R19). Holders of the October 2020 Bonds will be provided the option, without any obligation, to settle their subscription (fully or partially) by exchanging at a ratio of 1:1 based on the principal amount of the respective bonds. All holders of the October 2020 Bonds that purchase the bonds and opt for the bond exchange as a settlement option shall receive the accrued interest, net of applicable taxes, as of the day of issuance and listing of the bonds, in cash, on the issue date, which is indicatively set on a date prior to the maturity date of the October 2020 Bonds, depending on market conditions, and subject to receipt of regulatory approvals.
Upon issuance, the bonds will be the fifth tranche of Ayala Land’s Securities Program whose shelf-registration was rendered effective by the Securities and Exchange Commission on 22 April 2019 for the issuance of an aggregate principal amount of up to P50,000,000,000. The offer and issuance of Bonds shall be at such price and under such terms and conditions to be determined by the Company’s management in consultation with the joint lead underwriters and bookrunners. The bond exchange would be the first of its kind in the corporate Philippine peso debt capital markets.
A copy of the Preliminary Offer Supplement filed with the Securities and Exchange Commission (SEC) may be accessed through the link: https://ir.ayalaland.com.ph/wp-content/uploads/2020/08/ALI-Bonds-due-2025-Preliminary-Offer-Supplement-vF.pdf