LISTED property developer Ayala Land Inc. (ALI) has raised P20.5 billion in fresh capital for its sustainability-linked financing (SLF) program.
This comes after the successful listing of P6 billion in sustainability-linked bonds last week along with a P14.5-B sustainability-linked loan obtained from the International Finance Corp. (IFC).
“This landmark investment drives our efforts in portfolio decarbonization, reinforcing our commitment to a greener property sector in the Philippines,” ALI President and Chief Executive Officer Ana Ma. Margarita Dy said.
ALI aims to reduce emissions by 42 percent by 2030 for its malls, offices, and hotels and achieve EDGE Zero Carbon certification for its 1.5 million square meters of office properties by next year.
“Failure to meet these targets will result in a 5-basis point increase in interest rates for each unmet target, up to a total of 10 basis points,” ALI said in a statement.
ALI expects net proceeds of P5.92 billion from its sustainability-linked bonds, which will be used to fund capital expenditures for property developments.
These include Portico Land Corp.’s 43-story residential tower The Ametrine, which will get P820 million and is set to be completed by 2025.
ALI is also set to fund AKL Properties Inc.’s 61.4-hectare residential development, Ciela at Aera Heights Phase 1, with P600 million.
There are at least 11 more residential tower developments, two commercial developments, two dorm/hostel projects, and two land acquisitions that will benefit from the net proceeds through intercompany borrowings or equity infusions.
The sustainability-linked loan from IFC, meanwhile, is the company’s first loan from a multilateral agency and will be drawn down in four disbursements.
IFC Country Manager for the Philippines Jean-Marc Arbogast noted that Ayala Land “is a leader in sustainability in the Philippine property sector. We are proud to support this landmark investment, which we hope will inspire other industry players to join the green building movement.”
The funding will help ALI implement energy and water conservation measures across its commercial real estate portfolio.
Last April, ALI’s hospitality arm, Ayala Land Hotels and Resorts Corp., signed an agreement with the IFC in a bid to become the country’s first hotel group to achieve an EDGE Zero certification by 2026.
ALI’s SF program marks the first in the Philippines’ real estate sector, adhering to international guidelines and independently verified by Det Norske Veritas.
ALI shares on Monday rose by 20 centavos to P31.90 apiece amid a 1.17-percent decline for the benchmark Philippine Stock Exchange index.
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