Ayala Land Inc. (ALI) has raised P20.5 billion through its sustainability-linked financing program, which includes the International Finance Corporation’s first-ever loan to a Philippine corporation using this structure.
This was comprised of a P6 billion sustainability-linked bond and a P14.5 billion sustainability-linked loan from the IFC.
The program aligns ALI’s financial commitments with its environmental targets, independently verified by Det Norske Veritas. Interest rates are linked to ALI’s sustainability performance, with penalties for missed targets.
”This landmark investment drives our efforts in portfolio decarbonization, reinforcing our commitment to a greener property sector in the Philippines,’ Anna Ma. Margarita B. “Meean” Dy, Ayala Land president and CEO, said in a statement.
Green, efficient buildings
The targets include a 42 percent reduction in emissions from malls, offices, and hotels by 2030, and achieving EDGE Zero Carbon certification for 1.5 million square meters of office properties by 2025.
Its failure to meet these targets resulting in a 5-basis point increase in interest rates for each unmet target, up to a total of 10 basis points.
The P6 billion bond, with a 10-year term, is the first of its kind in the Philippines, attracting strong demand and offering a 6.9931 percent annual interest rate.
”Ayala Land is a leader in sustainability in the Philippine property sector. We are proud to support this landmark investment, which we hope will inspire other industry players to join the green building movement, Jean-Marc Arbogast, IFC Country Manager for the Philippines, said in the same statement.
