Ayala Land Inc. (ALI), a leading real-estate firm in the Philippines, is set to raise ₱10 billion this month through a sustainability-linked loan as part of its broader strategy to secure fresh capital for new developments, particularly in the premium market.

ALI Chief Financial Officer Augusto Bengzon confirmed the move during the Financial Executives Institute of the Philippines meeting last Friday. He noted that the financing would be done through multilateral lending institutions.

The fresh funding forms part of the company’s plan to raise ₱50 billion in additional capital this year. Of this amount, ₱30 billion will be sustainability-linked, reflecting strong market reception to such instruments. The remaining ₱20 billion will be raised through debt capital markets and listed on the Philippine Dealing and Exchange Corp. Bengzon added that the bond issuance is expected in October, with bilateral financing arrangements likely to follow in the last quarter.

The timing of the fundraise, according to Bengzon, was a “conscious decision” amid expectations of lower interest rates in the coming months. Rate cuts generally boost investor appetite for fixed-income instruments like bonds, which can offer higher yields compared to other assets.

Read More: CPIPG Signs First Sustainability-Linked Loan

Earlier, ALI President and CEO Anna Ma. Margarita Bautista-Dy said the company would roll out 21 new projects worth ₱57 billion in the second half of 2025. Nearly two-thirds of these developments will target the premium housing segment, under Ayala Land Premier and Alveo Land. The company sees stronger performance in the high-end market compared to its middle-income offerings.

In the first half of the year, ALI launched ₱42.9 billion worth of projects, including Laurean Residences in Makati City, commercial lots in Areza in Batangas, and industrial lots at Cavite Technopark.

Despite challenges in the broader residential property sector, ALI posted ₱14.2 billion in net income from January to June, an 8 percent increase year-on-year. The company attributed the growth to its diversified portfolio, which helped offset the slowdown in the mid-market housing segment.

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With its latest fundraising plan, Ayala Land is positioning itself to sustain growth while tapping into growing investor demand for sustainability-focused financing.

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Source: INQUIRER.NET