Ayala secures $100 million sustainability-linked loan

MANILA, Philippines — Diversified conglomerate Ayala Corp. has borrowed $100 million from Southeast Asia’s biggest bank to fund the expansion of core businesses and support its shift to sustainable financing.

Ayala yesterday said it has signed a $100-million loan with Singapore-based financier DBS Bank Ltd., marking its maiden hedged loan in Singaporean dollars.

The borrowing can be switched between US and Singaporean dollars, giving Ayala the flexibility to choose whichever fits its capital requirements.

Further, the loan is tied to Ayala’s environmental, social and governance (ESG) objectives, so its use must contribute to achieving such goals. Ayala chief finance officer Juan Carlos Syquia said the conglomerate is spending the proceeds for expansion projects across its core units.

“This facility enables us to support Ayala’s growth initiatives while reinforcing our commitment to responsible and sustainable business practices. It also reflects Ayala’s ability to access funding at attractive terms under this challenging environment,” Syquia said.

Ayala executive director and treasurer Estelito Biacora highlighted how the borrowing widened the company’s funding options and regional partners at the same time.

“This transaction strengthens Ayala’s ability to access diversified funding sources and widen the reach of our partnership in the region,” Biacora said.

DBS is Southeast Asia’s largest bank, managing an asset pool of around 897 billion Singaporean dollars and operating in markets worldwide.

For Ayala, the borrowing will strengthen its war chest in the midst of a challenging year marred by oil price shocks triggered by the Middle East conflict. Originally, Ayala had prepared at least P230 billion for capital expenditures this year, but it is considering reducing that budget.

DBC group head of energy, renewables and infrastructure Lim Wee Seng said the loan builds up Ayala’s resilience in a volatile period. Further, the option to choose in two currencies grants it the flexibility to identify which supports its priority programs.

“This is exactly the type of partnership we want to build with leading corporations in the region: one where capital supports business priorities, while sustainability is embedded into the way that growth is financed and measured,” Wee Seng said.

As of 2025, the Ayala Group has secured about $6.9 billion of loans tied to ESG objectives, as it works on blending its business goals with sustainability targets.