Ayala Land seals P15-B sustainability bond float

MANILA, Philippines – Ayala Land Inc. (ALI) has raised P15 billion from its latest sustainability-linked bond offer, allowing it access to more funds meant to enhance its developments across Luzon into green buildings.

The Zobel family-led real estate giant on Wednesday said the offering included five-year Series C bonds due 2030 at a fixed rate of 6.0671 percent per annum and 10-year Series D bonds due 2035 at 6.3192 percent per annum.

READ: Ayala Land starts P15-B bond offer

Of the total proceeds, 60 percent, or P9 billion, will be used to refinance existing debt.

The remaining 40 percent, or P6 billion, would support the redevelopment of Bank of the Philippine Islands (BPI) headquarters and Greenbelt 1 in Makati City, and the development of Ayala Malls Evo City in Cavite province, ALI said.

This represents the fourth tranche of its P50-billion debt securities program and the developer’s last debt funding for the year, according to ALI chief finance officer Jose Eduardo Quimpo II.

Milestone

“With this issuance, we have raised a total of P56 billion, or approximately $1 billion—a milestone that reflects our collective progress in integrating sustainability into the way we fund growth,” Quimpo said in a statement.

The company also noted the bonds were linked to ALI’s achievement of two key sustainability targets: a 42-percent reduction in greenhouse gas emissions across its malls, offices and hotels by 2030, and EDGE Zero Carbon certification for 1.5 million square meters of office space by the end of 2025.

The redevelopment of the BPI main office will feature a 45-story “energy-efficient” tower integrated with the new Dela Rosa Gardens, ALI said. Meanwhile, the legacy Greenbelt 1 is primed to be transformed into a modern lifestyle destination with sustainability features, including skylights and rainwater collection systems.

In pursuing sustainability-linked bond offers, ALI previously said these formats were “well-received” among investors, as interest in sustainability was steadily growing.