Zobel-led Ayala Corporation, the country's oldest conglomerate, has secured a €50 million (P3.1 billion) social loan from leading European bank ING to support the portfolio growth of Ayala Healthcare Holdings Inc. (AC Health).
In a statement, Ayala said, "this social loan from ING comes at an opportune time, as AC Health continues to make strides in addressing significant pain points in the Philippine healthcare sector."
Proceeds of the social loan will be allocated to AC Health portfolio growth and capital expenditures for retail pharmacy and hospital businesses, including QualiMed and Generika Drugstore and Joseph Drug.
This enables Ayala, through AC Health's integrated healthcare ecosystem, to continue providing accessible, affordable, and quality healthcare to all Filipinos.
Ayala said its key officers, including Chief Finance Officer Alberto de Larrazabal and Treasurer Estelito Biacora, finalized the deal with ING, represented by Jun Palanca, Country Manager for ING Philippines, and Lenin Dueñas, Head of Corporate Sector Coverage and Financial Institutions for ING Philippines.
"As a global bank with deep expertise in sustainable finance, we are proud to play a crucial role in enabling Ayala to address pressing challenges in the healthcare sector. This social loan marks an important milestone for ING and our partnership with the Ayala Corporation. ING's commitment to sustainability goes beyond financing; it is about empowering businesses to drive meaningful, long-term impact," said Palanca.
The €50 million social loan is the first Euro-denominated social loan that ING has structured for a Philippine conglomerate.
The social loan is structured in adherence to the latest Social Loan Principles published by the Loan Market Association, Asia Pacific Loan Market Association, and the Loan Syndications & Trading Association, paving the way for other foreign banks, including European banking institutions, to participate in financing the growth of sustainable projects in the Philippines.
"At Ayala, we always look for like-minded partners who believe in our purpose. This sustainable finance transaction from ING confirms our commitment to building businesses that enable people to thrive," Larrazabal said.
He added, "this social loan from ING will enable us not only to build and scale our AC Health portfolio, but it will also enable us to serve more Filipinos by providing them access to quality and affordable healthcare."