Real estate giant Ayala Land Inc. is planning to issue another P10 billion worth of Sustainability-linked (SL) Bonds after recently raising P20.5 billion from P6 billion in SL Bonds and P14.5 billion in SL Loans from the International Finance Corporation (IFC).
According to Philippine Rating Services Corporation (PhilRatings), it has assigned its highest Issue Credit Rating of PRS Aaa, with a Stable Outlook, for the proposed sustainability-linked bond issuance.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
On the other hand, a Stable Outlook indicates that the assigned rating is likely to be maintained or to remain unchanged in the next 12 months.
“ALI is moving forward with another key undertaking with its second Sustainability-Linked Bonds in the last quarter of the year,” said PhilRatings.
It noted that the proposed bonds are tied to two predefined Sustainability Performance Targets (SPT), the first of which is to reduce the operational Scopes 1, 2, and 3 greenhouse gas (GHG) emissions of ALI’s commercial properties by 42 percent by 2030, from a baseline date of 2021.
The second target is for ALI to obtain EDGE Zero Carbon certification for 1.5 million sqm of office commercial properties by 2025. The SPT for the proposed bonds are the same with the first Sustainability-Linked Bonds issued in July 2024.
PhilRatings said key considerations in the assignment of the rating and the corresponding outlook include ALI’s well-diversified portfolio, complemented by strong brand equity as well as its experienced and competent management team and synergies with the Ayala Group.
Also giving weight to the assignment of the rating and outlook is ALI’s solid commitment to sustainability, Robust profitability and healthy cash flows, and the company’s sound capital structure.
PhilRatings noted that, the rating assigned to the proposed Sustainability-linked Bonds is mainly in relation to ALI’s capacity to pay the rated bonds and is not an opinion on the attainability or capability to achieve the sustainability targets linked with the bonds.
In 2021, ALI committed to achieving Net Zero by 2050, a collective endeavor of the Ayala Group; alongside Globe Telecom (Globe), Bank of the Philippine Islands (BPI) and AC Energy (ACEN).
ALI successfully acquired new funding in support of its sustainability objectives in July 2024. The Company raised P20.5 billion from its Sustainability-Linked Financing Program, consisting of the Philippines’ first ASEAN Sustainability-Linked Bonds amounting to P6.0 billion and P14.5-billion Sustainability-Linked Loan granted by the IFC.