ALI defers Homestarter bonds

Property developer Ayala Land Inc. said it will delay the issuance of up to P5 billion worth of Homestarter bonds to early 2015, as the company already completed its fund-raising activities this year.

Ayala Land initially planned to issue the Homestarter bonds, an alternative saving strategy that aims to provide opportunities for people to purchase real estate products, in the second half of 2014.

“We don’t need any additional funding for the rest of the year and we are done with our fund raising for this year,” Ayala Land chief finance officer Jaime Ysmael told reporters.

Ysmael said the company still had an authority to sell P7 billion worth on Homestarter bonds, based on the previously approved registration statement with the Securities and Exchange Commission.

The property firm announced a plan in May to issue another tranche of Homestarter bonds, its 7th since the program was launched in 2006.

Ayala Land said Homestarter bonds proved to be an effective savings instrument for many bondholders. It is an interest-earning financial instrument that primarily targets retail investors who wish to set aside funds that may be used as full or partial downpayment in the purchase of an Ayala Land property.

Homestarter bonds, based on the previous issuances, have minimum investment requirement of P50,000 to as high as P5 million.

Bondholders earn a bonus credit through the program. This is a special discount on the net selling price of various Ayala Land properties, if the bondholder decides to apply the principal amount and accrued interests as a downpayment to acquire an Ayala Land property.

Ayala Land’s projects under Ayala Land Premier, Alveo, Avida, Amaia and BellaVita—may be acquired, using the savings and bonus credits generated from the Homestarter bonds. FILPRIMEHOMES

Ayala Land successfully raised P8 billion from issuance of fixed-rate retail bonds in April.

Ayala Land said net income grew by a quarter to P7.1 billion in the first half from P5.6 billion posted a year ago, driven by significant contributions from all business units, including property development, commercial leasing, hotels and resorts, construction and property management.

Consolidated revenues also increased 26 percent to P46.2 billion in the first half.

Source: manilastandardtoday