MANILA, Philippines - Ayala Land Inc's board of directors approved a strategic alliance with the group led by Ignacio R. Ortigas. The deal will pave the way for Ayala's entry into OCLP Holdings, the parent company of Ortigas & Co. Ltd.
The company earlier said it had allocated P15 billion for this purpose.
In a disclosure, Ayala Land said its board also approved the issuance of Homestarter Bonds worth up to P3 billion. BPI Capital Corp., China Banking Corp., PNB Capital & Investment Corp. and RCBC Capital Corp. have been appointed as underwriters for the bonds.
The bonds will be sold through a public offering to retail investors. It will be priced at 100% of face value and will mature 3 years from initial issue date.
Ayala Land said it will use the proceeds from the bond offering for general corporate purposes.
Ayala Land recently made the winning bid for the government's Food Terminal Inc. (FTI) property in Taguig City. With the P24.33 billion bid, Ayala Land beat rival property firms Gokongwei-led Robinsons Land and Andrew Tan's Empire East.