LISTED Ayala Land, Inc. (ALI) said it has raised P20.5 billion through its sustainability-linked financing (SLF) program.
The SLF package includes a P6-billion SL-bond and a P14.5-billion SL-loan from the International Finance Corp. (IFC), ALI said in an e-mailed statement over the weekend.
The P14.5-billion SL-loan is ALI’s first loan from a multilateral agency and the IFC’s first SL-loan for a Philippine corporation.
The loan will be disbursed in up to four installments.
The funding will be used to implement energy and water-saving measures across ALI’s commercial real estate portfolio, including energy-efficient lighting and cooling systems, passive building design, low-flow water fixtures, and water harvesting and recycling systems.
ALI reported high demand for the P6 billion 10-year term SL-bond, which reached P18.2 billion.
The bond has a coupon rate of 6.9931% per annum and was primarily supported by pension funds and institutional investors. It was listed on the Philippine Dealing & Exchange Corp. on July 18, marking the first ASEAN SL-bond in the local capital market.
ALI said the interest rates of the SL-bond and SL-loan need to meet sustainability metrics such as a 42% reduction in emissions from malls, offices, and hotels by 2030, and achieve EDGE Zero Carbon certification for 1.5 million square meters of office properties by 2025.
Failure to meet the targets will result in a five-basis-point increase in interest rates for each unmet target, up to a total of 10 basis points.
“This landmark investment supports our efforts in portfolio decarbonization and reinforces our commitment to a greener property sector in the Philippines,” said ALI President and Chief Executive Officer Anna Ma. Margarita B. Dy.
ALI said its SL-program is aligned with international standards such as the ASEAN Sustainability-Linked Bond Standards, the Sustainability Linked Bond Principles issued by the International Capital Market Association, and the Sustainability Linked Loan Principles issued by the Asia-Pacific Loan Market Association.
Norway-based international accredited registrar and classification society Det Norske Veritas independently verified ALI’s funding package.
ALI shares were last traded on July 19, finishing at P31.65 per share. — Revin Mikhael D. Ochave
