The Market Monitor Minding the Nation's Business
Ayala Land, Inc. (ALI) has approved the terms for the P3-billion Homestarter Bonds and the P7-billion third tranche of the fixed rate bond series, both of which will be issued under the corporation’s P50-billion Debt Securities Program as approved by the Securities and Exchange Commission (SEC) last March.
ALI’s board also approved the declaration of cash dividends of P0.238 per outstanding common share, bringing full year dividends to 47.6 centavos per common share or a 15 percent increase from last year’s regular cash dividends and payout ratio of 40 percent of its prior year’s earnings.
The cash dividend will be payable on September 16 to stockholders of common shares as of record date on September 2.
ALI posted a net income of P9.74 billion in the first six months of 2016, which was 16 percent higher compared to last year’s P8.39 billion.
Consolidated revenues grew by 8 percent to P54.76 billion from P50.61 billion a year ago.
Its core businesses, such as property development, commercial leasing, and services, steadily performed and grew 8 percent from a year ago to P51.45 billion which was attributed to the coordinated expansion of its large mixed-use estates in key growth areas nationwide.
The SEC recently reported that shelf registration program boosted the corporate bond issuance.
SEC said local firms continue to turn to the domestic bond market to raise much needed funds to expand their business operations.
Private companies registered with the SEC a total of P137 billion in fixed rate and deferred coupon paying bonds from January to July in which P121 billion or 88 percent of these were registered under the “shelf registration system” in which new registered stocks are not issued immediately.
Out of the total P137 billion registered corporate bonds, a total of P52 billion had been issued so far, and P36 billion worth of corporate bonds were issued under shelf registration.
SEC attributed the hefty increase in corporate bond issuance by conglomerates to the enhanced shelf registration program under the 2015 Implementing Rules and Regulations of the Securities Regulation Code which took effect on November 9, 2015.
Under a shelf registration program, securities to be issued in tranches may be registered for an offering to be made on a continuous or delayed basis for a period not exceeding three years.
This means the issuers can time their capital raising activities as they are needed or when market conditions favor them.
The SEC also provided flexibility in the payment of registration fees. The fees are now payable per tranche of issuance and proportional to the issued value.
Corporate bond issuers under shelf registration program include Ayala Land Inc., DMCI Project Developers Inc., Ayala Corporation, and SM Prime Holding Inc. RIZA LOZADA