Listed Ayala Land, Inc. (ALI) said it has raised P15 billion through sustainability-linked bonds (SLBs) to finance green initiatives.
In a disclosure on Wednesday, ALI said the offering consists of a five-year Series C SLB due 2030 and a 10-year Series D SLB due 2035.
The Series C and Series D bonds have fixed rates of 6.0671% and 6.3192% per annum, respectively.
GlobalInx Securities & Stocks, Inc. “The inclusion of sustainability-linked performance targets further underlines Ayala Land’s alignment with global ESG (environmental, social and governance) investment standards, attracting institutional investors looking for responsible and future-oriented capital placement,” Toby Allen C. Arce, head of sales trading, said in a Viber message.
“The fact that it can attract strong demand for sustainability-linked bonds on this scale shows that investors view its ESG commitments as real, not symbolic – a key differentiator in the post-pandemic capital markets landscape,” he said.
Philippine Rating Services Corp. (PhilRatings) has assigned the bonds a PRS AAA rating with a stable outlook, the developer said. The PRS AAA rating indicates that the issuer has a “very strong ability” to meet financial obligations and that credit risk is low.
Louis A., head of sales for Regina Capital Development Corp. “The bond’s alignment with sustainability goals also reflects growing confidence in the company’s commitment to ESG principles and its long-term strategic direction,” Limlingen said in a Viber message.
The offering also marks the fourth tranche under ALI's P50-billion debt securitization program.
“We have raised a total of P56 billion, or approximately $1 billion – a milestone that reflects our collective progress in integrating sustainability into the way we fund development,” said ALI Chief Finance Officer Jose Eduardo A. Quimpo II.
With the latest issuance completing the developer's debt financing plan for this year, Mr Arce said ALI has secured sufficient liquidity to support expansion, refinance existing obligations and maintain growth momentum across its residential, commercial and property projects.
About 60% of the SLB proceeds will be allocated to refinance existing debt, while the remaining 40% will finance major projects, including the redevelopment of the BPI Headquarters and Greenbelt 1 in Makati City and the development of Ayala Malls Ivo City in Cavite.
The redevelopment of the BPI headquarters includes a 45-storey energy-efficient tower integrated with the new Dela Rosa Gardens. Greenbelt 1 is also expected to become a modern lifestyle destination with sustainability features such as skylights and rainwater collection systems.
ALI has linked its SLB to a 42% reduction in greenhouse gas emissions across its malls, offices and hotels by 2030 and EDGE zero carbon certification for 1.5 million square meters of office space by the end of 2025.
In the first half, ALI's net income rose 8% to P14.2 billion due to higher contribution from property development, leasing and hospitality businesses.
ALI shares closed at P20.15, down 2.66% or 55 centavos on Wednesday. , Beatriz Marie D. Cruz
