Ayala Land eyes sustainability-linked P10-B fundraise
Ayala Land Inc. (ALI) intends to raise P10 billion this month via a sustainability-linked loan ahead of the planned launch of more projects, specifically in the premium segment.
Augusto Bengzon, ALI chief financial officer, on Friday told reporters this would be done through multilateral financing. This was on the sidelines of a meeting of the Financial Executives Institute of the Philippines.
This month’s fundraising is part of ALI’s plan to raise a total of P50 billion in additional funds this year. The amount is meant to bankroll its pipeline projects.
According to Bengzon, P30 billion of the total fundraising target would be in a sustainability-linked format. This is so, especially since the format had been “well-received.”
The remaining P20 billion will be raised through the debt capital markets and listed on the Philippine Dealing and Exchange Corp.
The CFO added that the bonds would most likely be issued in October, while the bilateral format would happen within the last quarter of the year.
In raising additional capital in the second semester, Bengzon explained that it was a “conscious decision” on expectations that rates would be coming down.
Rate cuts typically make fixed-income securities, like bonds, more attractive because these promise a higher yield for investors.
Anna Ma. Margarita Bautista-Dy, president and CEO of ALI, earlier confirmed they would launch 21 projects worth P57 billion in the second semester this year.
Roughly two-thirds of these will be in the premium market under Ayala Land Premier and Alveo Land. This is in recognition of this segment still performing better than ALI’s core markets, or those in the middle-income segment.
The company launched P42.9-billion worth of property development projects in the first six months of the year, including ALI’s Laurean Residences in Makati City, commercial lots in Areza in Batangas province and industrial lots at Cavite Technopark.
The real estate giant netted P14.2 billion in the January to June period, up by 8 percent, thanks to its diverse portfolio. This was despite a weak residential market preventing faster growth.
Revenues, on the other hand, were flat at P83.1 billion.
