ALI raising P15 billion from sustainability-linked financing

MANILA, Philippines — Property giant Ayala Land Inc. (ALI) is returning to its pioneering sustainability-linked financing program with an upcoming plan to raise as much as P15 billion.

ALI chief finance officer Augusto Bengzon told The STAR that the company is looking to raise P10 billion to P15 billion from sustainability-linked financing “soon.”

Committed to be at the forefront of sustainable development in the country, ALI’s sustainability-linked financing reflects the growing recognition of the important role that responsible finance plays in building a more resilient future.

ALI received a special citation at the PDS Annual Awards last Friday for being the pioneer issuer of the ASEAN sustainability-linked bonds.

ALI successfully raised P20.5 billion in July last year through its pioneering sustainability-linked financing program, which included a P6 billion sustainability-linked bond and a P14.5-billion sustainability-linked loan from the International Finance Corp. (IFC).

The company’s sustainability-linked bond with a 10-year term was the first of its kind offered to the public in the Philippines.

The sustainability-linked loan provided by IFC, meanwhile, was ALI’s first loan from a multilateral agency and IFC’s first sustainability-linked loan for a Philippine company.

In November last year, ALI again raised P8 billion from the second tranche of its sustainability-linked bonds due 2034, growing its sustainability-linked financing program to P28 billion.

Sustainability-linked bonds offer investors an interest rate that is tied to the issuer’s performance in meeting defined sustainability targets.

ALI has approved a P75-billion fundraising initiative this year, which is intended to partially finance general corporate requirements and refinance maturing debt.

The amount will be raised through the issuance of retail bonds and corporate notes for listing on the Philippine Dealing and Exchange Corp. as well as through execution of bilateral term loans.

For 2025, ALI is allocating P95 billion in capital expenditures, 37 percent of which will go to the residential segment, while 25 percent will be for estate development and 23 percent will be spent for leasing and hospitality assets.

The company is also looking at P100-billion worth of property development launches this year, P80 billion in residential and P20 billion for commercial and industrial lots.