Inquirer 3/25/2010

AYALA LAND INC. has started offering particularly to potential home buyers the third round of its Homestarter Bonds.

The offer period started on March 9 and will end on April 6.

Earlier, the Securities and Exchange Commission approved the issuance by ALI of up to P504 million in Homestarter Bonds with an oversubscription option of up to P504 million. BPI Capital Corp. has been named as underwriter and issue manager.

According to ALI senior vice president Rex Mendoza, the novel financing scheme’s primary targets are mid-income individuals and couples who desire to own their own homes.

ALI studies, he said, showed that “a large segment of the potential buyers strongly desire to own a home but view the down payment required as a stumbling block.”

“The bonds instill financial discipline to its subscribers. Three years of setting aside a minimum of P5,000 monthly is a very good practice for monthly amortization, or just saving in general. It’s a short-term commitment that gives subscribers a choice between collecting the money that they have saved at the end of the three-year term or using it as down payment for their home,” he added.

The Ayala Land Homestarter Bond scheme requires buyers to set aside as low as P5,000 a month for a bond subscription over 36 months or a total of P180,000. The amount saved will earn 5 percent a year.