ALI plans P50-B fundraising push this 2nd semester
Ayala Land Inc. (ALI) plans to raise P50 billion in additional funds this year to bankroll its pipeline projects. Most of these will be in the strong premium segment.
In a briefing with reporters last week, ALI chief financing officer Augusto Bengzon confirmed that P30 billion of the total fundraising target would be in a sustainability-linked financing format. Bengzon noted that this had been “well-received.”
The remaining P20 billion will be raised through debt capital markets and listed on the Philippine Dealing and Exchange Corp., he said.
“It was a conscious decision on our part to activate the funding program in the second half [of the year] on the expectation that rates will be coming down,” Bengzon said.
Rate cuts typically make fixed-income securities, like bonds, more attractive because these promise a higher yield for investors.
So far, the Bangko Sentral ng Pilipinas has cut the benchmark rate for overnight borrowing by 50 basis points this year to 5.25 percent.
According to Bengzon, they will tap 40 percent of their fundraising goal within this month. The rest will be in the fourth quarter.
This comes amid the Zobel family-led developer’s plans to launch in the second semester 21 new projects worth P57 billion. Of which, roughly two-thirds will be in the premium market under Ayala Land Premier (ALP) and Alveo Land.
The remaining one-third will be in the company’s core residential business, including Avida, said ALI president and CEO Anna Ma. Margarita Bautista-Dy.
They will likewise focus on developing more horizontal projects after seeing strong demand.
In the first semester, ALI launched P42.9 billion worth of property development projects. These include ALP’s Laurean Residences in Makati City, commercial lots at Areza in Batangas province and industrial lots at Cavite Technopark.
The developer expects to see a better second half of this year as it anticipates more revenue to flow in.
Dy said they had a high residential revenue base in the first half of 2024. This resulted in a 5-percent decline in ALI’s top line in the first six months of 2025. This was pegged at P41.3 billion.
With a higher takeup in the January to June period, Dy said this could translate to an increase in residential revenue by the second half.
