Real estate giant Ayala Land Inc. is planning to raise up to P33 billion from a planned bond issuance of P22 billion with an oversubscription option of up to P11.0 billion.
The proceeds of the proposed bond offering will be used by the firm for refinancing and to fund general corporate requirements, including capital expenditures.
Philippine Rating Services Corporation (PhilRatings) said it has assigned the highest Issue Credit Rating of PRS Aaa, with a Stable Outlook, to ALI’s proposed bond issuance.
IT has also maintained the Issue Credit Rating of PRS Aaa, with a Stable Outlook, for ALI’s P94.25 billion in outstanding bonds.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk and the obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
A stable Outlook indicates that the assigned rating is likely to be maintained or to remain unchanged in the next 12 months.
PhilRatings said the key considerations in the assignment of the ratings and the corresponding outlook include ALI’s diversified portfolio, complemented by strong brand equity, and its seasoned management team and synergies with the Ayala Group.
It also noted ALI’s improved profitability, following the pandemic-induced decline in 2020, albeit results are still significantly below pre-pandemic levels, and its sound capital structure and ample liquidity buffers.
In 2021, ALI’s revenues grew by 10.3 percent to P106.1 billion while net income grew 42.4 percent to P15.7 billion. Although a substantial improvement from 2020, total revenues and net income in 2021 were equivalent to only 62.9 percent and 41.7 percent of their respective 2019 pre-pandemic figures.
“Moving forward, ALI expects that its growth momentum will be sustained, considering the more controlled pandemic situation and the more positive economic outlook,” PhilRatings said.