The board of Ayala Land Inc. (ALI) has approved plans to raise up to P10 billion in new funds from the issuance of retail bonds.
In a report to the stock exchange, the property developing arm of Ayala Corp. said proceeds of the issue will be used to “partially finance general corporate requirements and to refinance maturing loans.”
The issuance is set to be the fourth drawdown from the company’s P50 billion bond shelf registration program approved earlier by the Securities and Exchange Commission. The bonds will be listed on the Philippine Dealing and Exchange Corp. (PDEX).
In November last year, ALI also raised P10 billion from the issuance of fixed-rate bonds, the proceeds of which were used to fund various projects by the developer, among others.
ALI said its board also greenlighted plans to allocate additional P25 billion for its current share buyback program, bringing the available balance to P26.1 billion.
The buyback program are undertaken by companies which consider their shares to be undervalued.
It will be done through open market purchases executed via trading facilities at the local stock exchange.
ALI said it has also approved cash dividends of 26.8 centavos per outstanding common share, reflecting a three percent increase from the dividends declared in the first half of last year of 26 centavos per share.
The cash dividends will be payable on 20 March 2020 to stockholders of common shares as of 6 March 2020, ALI said.
Sales turn robust
ALI registered 13 percent higher net income in 2019 to P33.2 billion from P29.2 billion in 2019 owing to strong lot sales in office, commercial and industrial segments.
Shares of ALI were sold for P42.55 apiece as of 12:30 p.m. on Friday, up 0.24 percent. In the last 52 weeks its shares were traded to a high of P53.85 apiece and a low of P38.25 each.