Ayala Land raises P8 billion from sustainability-linked bond offering

Property developer Ayala Land Inc. listed its 10-year P8 billion Asean sustainability-linked bonds (tranche 2) at the Philippine Dealing and Exchange Corp.

The firm’s recent listing comes five months after launching a P20-billion sustainability- linked financing program last July. In total, the developer has now issued bonds at P28 billion with an average tenor of 9 years.

“The bonds are linked to specific sustainability performance targets, further reinforcing Ayala Land’s commitment to achieving net-zero emissions by 2050 and advancing its broader environmental and social sustainability objectives,” the developer said through a statement.

Tranche 2 of the bond float is part of Ayala Land’s P50-billion securities program approved in 2023. The debt paper carries a yield of 6.1334 percent per year.

“The success of this sustainability-linked financing program, novel as it may be in the country, brings us to the conclusion that the Philippine investing community truly realizes that sustainable finance is integral to the urgent pursuit of sustainability,” Ayala Land President and CEO Anna Ma. Margarita B. Dy said.

Dy added the company would use sustainability-linked financing format as “our template for our fund-raising requirements.”

“We will continue to pursue large, impactful projects that will improve the quality of life of the Filipinos. Among such developments are the ‘One Ayala Integrated Transport Hub’ and the transit connectivity and pedestrianization of the Makati central business district, of BGC and Nuvali and our other estate developments,” she said.

Joint lead underwriters and bookrunners for the deal were BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., Land Bank of the Philippines, RCBC Capital Corp. and SB Capital Investment Corp.