ALI Completes P20.5B in Sustainability-Linked Funding

Management committee members and executives of Ayala Land, Inc., the Securities and Exchange Commission, Philippine Dealing & Exchange Corp., Philippine Depository & Trust Corp., and joint lead underwriters and bookrunners, namely, BDO Capital, BPI Capital, China Bank Capital, LANDBANK, SB Capital and RCBC Capital, at the listing of the P6 billion Sustainability-Linked Bonds on July 18

This landmark investment drives our efforts in portfolio decarbonization, reinforcing our commitment to a greener property sector in the Philippines.

ANNA MA. MARGARITA DY
ALI President and CEO

Ayala Land, Inc. has successfully raised P20.5 billion through its pioneering Sustainability-Linked Financing (SLF) Program, which includes a P6 billion Sustainability-Linked Bond (SL Bond) and a P14.5 billion Sustainability-Linked Loan (SL-Loan) from the International Finance Corporation (IFC).

This initiative is a first for the Philippine real estate sector, adhering to international guidelines and independently verified by Det Norske Veritas. It cements ALI’s position as a sustainability leader in the real estate sector and sets a precedent for future green financing initiatives in the Philippines.

The SLF Program aligns ALI's financial commitments with its environmental targets. Interest rates are linked to its performance on key sustainability metrics, including a 42 percent reduction in emissions from malls, offices, and hotels by 2030, and achieving EDGE Zero Carbon certification for 1.5 million square meters of office properties by 2025. 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.

The P6 Billion SL-Bond, with a 10-year term, is the first of its kind offered to the public in the Philippines. The bond, which attracted substantial demand, is anchored by pension funds and institutional investors and carries an annual coupon rate of 6.9931 percent. Meanwhile, the P14.5 Billion SL-Loan, provided by IFC, is ALI’s first loan from a multilateral agency and IFC’s first sustainability-linked loan for a Philippine corporate. The loan supports ALI’s decarbonization efforts and green building initiatives.