ALI formalizes P8-B bond issue

MANILA, Philippines – Property giant Ayala Land Inc. has finalized its planned issuance of P8 billion worth of bonds.

The proposed issue was assigned an issue credit rating of PRS Aaa with a stable outlook by local credit watchdog Philippine Rating Services Corp.  PRS Aaa is the highest rating assigned by PhilRatings.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.  

On the other hand, an outlook is an indication as to the possible direction of any rating change within a one year period and serves as a further refinement to the assigned credit rating for the guidance of investors, regulators, and the general public.

A stable outlook is defined as: “The rating is likely to be maintained or to remain unchanged in the next 12 months.”

In issuing the rating, PHilRatings took into account ALI’s continuously growing profitability, healthy cash flow generation, Sound capitalization, well diversified portfolio, and sustained healthy outlook for the real estate sector.

ALI is primarily involved in the development of large scale, integrated mixed use estates. It is highly diversified, with projects for the high-end, middle-income and affordable housing segments. It is also into traditional office, Business Process Outsourcing (BPO) office and shopping center leasing, hotel operations and construction.

As of end of 2015, ALI  had a substantial land bank of 8,948 hectares, located in 55 centers throughout the country.

Last year, the company posted a net income of P20.9 billion, 18 percent higher than in 2014 as revenues grew 12.6 percent.

ALI’s medium-term plan is to hit P40 billion by 2020 by pursuing its expansion in the residential sector while beefing up its recurring income  business.