Ayala Corp taps $100-M sustainability loan from DBS
Ayala Corp. has obtained a $100-million sustainability-linked loan facility from Singapore-based DBS Bank Ltd., marking the conglomerate’s maiden Singapore dollar-denominated hedged debt deal.
In a statement on Monday, the country’s oldest conglomerate said the facility would help diversify its funding sources while supporting the continued expansion of its businesses.
Ayala said proceeds from the financing would be used to support the growth of its portfolio across core sectors.
The company added that the transaction reflected strong market confidence in its credit profile and long-term growth prospects despite a challenging operating environment.
The sustainability-linked structure also aligns Ayala’s financing strategy with its environmental, social and governance objectives, the company said.
“This facility enables us to support Ayala’s growth initiatives while reinforcing our commitment to responsible and sustainable business practices,” said Ayala’s chief finance officer, chief risk officer and finance group head, Juan Carlos Syquia.
Syquia added that the deal also showed Ayala’s ability to access funding at attractive terms despite market uncertainties.
Ayala executive director and treasurer Estelito Biacora said the facility would strengthen the conglomerate’s access to diversified funding sources while widening its regional banking partnerships.
“It reflects our disciplined approach to capital management and the continued integration of sustainability into our financial strategy,” Biacora said.
For DBS, the transaction represented another step in supporting companies pursuing sustainability-linked financing structures in the region.
Lim Wee Seng, DBS group head for energy, renewables and infrastructure, sustainability, project finance and strategic advisory, said the deal would give Ayala greater borrowing flexibility through access to either US dollar or Singapore dollar funding.
Seng added that the facility highlighted the type of partnerships DBS wanted to build, where sustainability objectives were integrated into financing strategies.
