Ayala Land Issues and Lists PhP 4.3 Bn Short Dated Notes

July 17, 2017  Ayala Land issued and listed on the Philippine Dealing & Exchange Corp. its 2.75% PhP 4.3 Bn Short Dated Notes due 2019.   The notes adopt a novel structure aimed at tapping the money market funds of unit investment trust funds (UITF) following the decision of the Bangko Sentral ng Pilipinas to discontinue trust and UITF access to its overnight and term deposit facilities effective June 30, 2017.  With its distribution limited to UITFs or Qualified Investors, the notes are exempt from the registration requirements under the Securities Regulation Code of the Securities & Exchange Commission.  It is also the first exempt securities to be listed on the PDEx.

ALI Issues Short Dated Notes
From left to right: Ryan Romeo Tapia (Managing Director, China Bank Capital Corporation), Maria Theresa Ravalo (President and Chief Operating Officer, Philippine Depository & Trust Corp.), Antonino Nakpil (President & Chief Operating Officer, Philippine Dealing & Exchange Corp.), Kosintr Puongsophol (Economic Research and Regional Cooperation Department, Asian Development Bank), Ephyro B. Amatong (Commissioner, Securities & Exchange Commission), Romeo Uyan, Jr. (President, China Bank Capital Corporation), Bernard Vincent Dy (President & Chief Executive Officer, Ayala Land, Inc.), Cesar Crisol (Chairman & Chief Executive Officer, Philippine Dealing & Exchange Corp.), Augusto Bengzon (Chief Finance Officer & Group Treasurer, Ayala Land, Inc.), Patrick Cheng (Senior Vice President, China Banking Corporation – Trust and Asset Management Group), and Virgilio Chua (Managing Director and Head of Origination and Client Coverage, China Bank Capital Corporation).

“We are grateful to the SEC, the PDEx and our partners as we feel that we are on better footing today than when we started this journey in 2008 having grown our firm’s access to the bond and equity markets, to new instruments and tenors, and today to a new investor base.  And so, we look forward to the next nine years and to what we can accomplish together for the further deepening of the Philippine capital markets”, Ayala Land Chief Finance Officer and Treasurer Augusto D. Bengzon said.

“Today we mark an important milestone for the organized fixed income market as we hold the first ever enrolment of a corporate security that will be distributed to Qualified Institutional Buyers”, according to Mr. Cesar B. Crisol, Chairman & CEO of the PDEx.  “And it is fitting that the firm that is bringing this issue to the market is also the first one that listed its bonds in the public market in 2008, Ayala Land Inc.  It is also not surprising because Ayala Land has established a track record of “firsts” for its bonds in this market. In terms of length of tenor, ALI remains the first and only firm to issue and list a twenty-year corporate bond. In terms of frequency, ALI is the first corporate issuer to list bonds four times within a single year, clearly demonstrating how to optimize the shelf-registration facilities of the SEC, of which it was also the first applicant.” And today, ALI is adding another first, bringing forth the first Enrolled Security, a PHP 4.3 Billion Short Dated Note to the trading platform.”, Mr. Crisol added. 

Gracing the occasion were SEC Commissioner Ephyro B. Amatong and Asian Development Bank Head of Financial Sector and Financial Sector Community of Practice Noritaka Akamatsu.

China Bank Capital Corporation was Sole Underwriter and Sole Bookrunner for the issue.