Property giant Ayala Land Inc. (ALI) has obtained a top credit for a planned P10-billion bond offering, which will support its expansion.
Philippine Rating Services Corp. (PhilRatings) said the sale of fixed-rate debt was assigned a credit rating of PRS Aaa with a stable outlook, which meant a low chance of default.
“The obligor’s capacity to meet its financial commitment on the obligation is extremely strong. PRS Aaa is the highest rating assigned by PhilRatings,” the company said in a statement.
The bonds will mature in tranches of two years and 7.25 years. It marks the third issuance from the company’s P50-billion three-year securities program.
As noted, the funds will support new projects, including residential and commercial projects such as One Ayala Avenue, Ayala Triangle Garden 2 and
the refurbishment of the Glorietta and Greenbelt malls in Makati City.
ALI will also acquire land in Laguna and Batangas to tap growth in the provinces.
ALI is part of Ayala Corp., the country’s oldest conglomerate with businesses in telecommunications, banking, manufacturing, water, power and infrastructure.
PhilRatings considered ALI’s diversified portfolio, experienced management team, the “healthy outlook” in the property sector and the company’s financials.
ALI posted consolidated revenues of P83.2 billion for the first half of 2019, up 3 percent year-on-year.
“The increase was mainly attributable to the sustained improvement in the property development business and the strong performance of the commercial leasing business,” PhilRatings noted.
Net income, on the other hand, grew by 11 percent from P15.8 billion to P17.52 billion.