LISTED Ayala Land, Inc. (ALI) said it has raised P15 billion through sustainability-linked bonds (SLBs) to fund green initiatives
In a disclosure on Wednesday, ALI said the offering includes five-year Series C SLB due 2030 and 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.
“The inclusion of sustainability-linked performance targets further underscores Ayala Land’s alignment with global ESG (environmental, social, and governance) investment standards, appealing to institutional investors seeking responsible and future-oriented capital placements,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.
“The fact that it could attract strong demand for a sustainability-linked bond at this scale suggests investors view its ESG commitments as genuine, not symbolic — a critical differentiator in the post-pandemic capital market landscape,” he added.
Philippine Rating Services Corp. (PhilRatings) assigned the bonds a PRS Aaa rating with a stable outlook, the developer said. A PRS Aaa rating indicates that the issuer has a “very strong capacity” to meet financial obligations and that credit risk is low.
“The bond’s linkage to sustainability targets also reflects a growing trust in the company’s commitment to ESG principles and its long-term strategic direction,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
The offering also marks the fourth tranche under ALI’s P50-billion debt securities 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 growth,” ALI Chief Finance Officer Jose Eduardo A. Quimpo II said.
With the latest issuance completing the developer’s debt funding plan for this year, Mr. Arce noted that ALI has secured sufficient liquidity to support expansion, refinance existing obligations, and maintain development momentum in its residential, commercial, and estate projects.
Around 60% of the SLB proceeds will be allocated to refinance existing debt, while the remaining 40% will fund major projects, including the redevelopment of the BPI Headquarters and Greenbelt 1 in Makati City, and the development of Ayala Malls Evo City in Cavite.
The redevelopment of the BPI Headquarters features a 45-storey energy-efficient tower integrated with the new Dela Rosa Gardens. Greenbelt 1 is also slated to become a modern lifestyle destination with sustainability features like skylights and rainwater collection systems.
ALI linked its SLBs to the 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 end-2025.
For the first half, ALI’s net income rose by 8% to P14.2 billion on the back of higher contributions from its property development, leasing, and hospitality businesses.
ALI shares on Wednesday were down by 2.66% or 55 centavos to close at P20.15 each. — Beatriz Marie D. Cruz