Do you have a spare Php 50,000 but don’t have any interest in investing it on a specific business? Ayala Land Inc. may help you grow that money if you lend it to them for 10 years.
According to an article by Entrepreneur.ph, Ayala Land Inc. is selling 10-year bonds to raise up to Php 7 billion that will fund capital expenditure projects as well as other corporate purposes. These bonds, which will pay a fixed interest rate of 5.2624 percent per annum, will mature in 2027. With a rating of PRS Aaa from Philippine Rating Services Corp, the bond is considered “of the highest quality with minimal credit risk.”
Compared to savings and time deposit offered by banks, the bond offers a higher coupon rate. However, it should be noted that these bonds don’t get limited government insurance protection unlike bank deposits. Deposits up to half a million pesos are insured by the Philippine Deposit Insurance Corporation.
If you’re interested in investing, you can buy Ayala Land Inc.’s retail bonds for as low as P50,000. Additional placements can be made in increments of P10,000. Offering period lasts from April 10, 2017 until April 21, 2017. Issuance of bonds will be on April 28, 2017.
For the entire 2016, Ayala Land Inc. had a reported revenue of Php118 billion, which is a 17 percent increase from 2015. In addition, its net income increased by 17 percent from Php 21 billion in 2015 to Php 24 billion in 2016.
Regarded as the country’s second most valuable listed property company, Ayala Land is part of the Ayala Corporation, the oldest operating business house in the Philippines. It offers residential spaces, offices, shopping centers, hotels and resorts, health care facilities as well as convenience stores all over the country.