September 22, 2024 | 12:00am
MANILA, Philippines — Property giant Ayala Land Inc. (ALI) is planning to raise another P10 billion from the issuance of sustainability-linked bonds.
Philippine Rating Services Corp. (PhilRatings) said it has assigned an issue credit rating of PRS Aaa with a stable outlook ALl’s proposed sustainability-linked bonds amounting to P10 billion.
PRS Aaa is the highest rating assigned by PhilRatings, while a stable outlook indicates that the assigned rating is likely to be maintained or to remain unchanged in the next 12 months.
According to PhilRatings, key considerations in the assignment of the rating and the corresponding outlook include ALI’s well-diversified portfolio, which is complemented by strong brand equity as well as its experienced and competent management team and synergies with the Ayala Group.
The company’s solid commitment to sustainability, robust profitability, healthy cash flows and sound capital structure were likewise considered.
As the real estate arm of the Ayala conglomerate, ALI boasts of a diverse portfolio of developments that include residential, commercial, office, hospitality and industrial properties intended for sale and for lease.
“The well-balanced portfolio of real estate properties and services places ALl in a good position to leverage on any potential opportunities and mitigate risks that might arise in those segments,” PhilRatings said.
“ALl is also a highly trusted brand, with a solid track record since its incorporation in 1988,” it said.
ALI successfully raised P20.5 billion last July 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 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.
ALI has earmarked P100 billion for capital expenditures this year, 16 percent more than last year’s P86.2 billion.
Last month, ALI chief finance officer Augusto Bengzon said that the company intends to raise as much as P30 billion more in fresh funds to support a faster capital spending for the second half of the year.
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