AYALA LAND INC. is considering offering early next year a third series of ?Homestarter? bonds worth as much as P1 billion to take advantage of strong demand from retail investors wishing to put up seed money for future acquisition of residential units.

ALI chief finance offer Jaime Ysmael told reporters at the sidelines of an Ayala-wide ?Sustainability? summit Tuesday that with its P504-million ?Homestarter? bond offering last month oversubscribed, the company was planning a new and larger issuance.

?In response to that, we are lining up a third tranche, hopefully in time for our product launches next year,? Ysmael said.

He said the new series would hopefully be offered within the first half of 2010 but this would still have to be consulted with the arranger, BPI Capital Corp.

Ysmael said ALI?s purpose in offering these bonds was not to raise funds but to boost residential sales.

Under the terms of the most recent offering, buyers can set aside as low as P5,000 for a bond subscription over 36 months. The accumulated investments of P180,000 will earn 5 percent a year. Buyers can earn an additional 10-percent bonus credit when applied as down payment to a property developed by ALI through its residential brands, Ayala Land Premier, Alveo Land and Avida Land.

At any time during the three-year investment period, a bondholder may select an Ayala Land Premier, Alveo, or Avida property and apply the bond as payment.