Philippines’ Ayala secures $21m loan for capex
Ayala Land Inc, the Philippines' largest property firm, said on Wednesday it has secured a 7-year loan worth 1 billion pesos ($21 million) from Landbank of the Philippines to fund capital spending this year, reported Reuters.
"Proceeds from the facility will be used by the company for general corporate purposes, as well as financing its capital expenditure program," Ayala Land told the Philippine Stock Exchange.
State-run Landbank will be the sole lender and arranger of the floating rate notes to be issued by Ayala Land.
Ayala Land, a subsidiary of the country's oldest conglomerate Ayala Corp (AC.PS), lowered its capital spending by 8 percent to 17.4 billion pesos this year, with consumers expected to cut back on spending due to a slowing economy.
The company, a builder of residential communities, high-rise apartments, office buildings and upscale malls, has said much of its capital spending this year would fund the completion of ongoing real estate projects.
Ayala Land's net profit grew 9.6 percent in 2008 despite the economic slowdown. Its shares gained 3.57 percent to 5.8 pesos on Wednesday, outperforming the main index .PSI which slid 0.72 percent.
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