February 23, 2017

ALI Approves Issuances of New Debt

Ayala Land Inc (ALI) yesterday disclosed that its board has approved the issuance of P20b worth of retail bonds, corporate notes, and/or bilateral loans with a term of up to 10 years. It also approved plans to borrow up to P10b through the issuance of short-dated notes (up to 21 months) to refinance its short-term loans.

Our take: ALI ‘s plan to issue retail bonds and corporate notes forms part of its P50b debt securities program approved last year by the SEC. The company has additional leeway to borrow given the growing recurring cash flows from its mall, office and hotel assets. It has also reduced its dividend payout to 34% from 40% previously. As of end-2016, ALI’s net gearing was at 79% from 74% in end-2015 and 82% in end-9M16. – WealthSec