Property giant Ayala Land Inc. has priced an innovative P10-billion 10-year bond offering to yield 5.92 percent per annum for the first five years.
Proceeds will partly cover ALI’s record capital spending of P111 billion this year.
In a press briefing after the company’s stockholders meeting on Wednesday, ALI Chief Finance Officer Augusto Bengzon said the latest bond offer – which was priced at a tight spread of 75 basis points over the five-year local interest rate benchmark – would close this Friday.
At 5.92 percent coupon rate, Bengzon said this was a “very tight” pricing.
“It’s quite innovative. This is a 10-year bond but with re-pricing feature after five years. So we were able to price and get a lower coupon rate by virtue of the fact (that) it’s priced off the five-year benchmark,” Bengzon said.
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