Real estate giant Ayala Land Inc. (ALI) will be raising ₱10 billion this month from a multilateral sustainability-linked loan as part of the ₱50 billion in funds it will be securing in the second half of the year.

In an interview, ALI Chief Finance Officer (CFO) Augusto Bengzon said that ₱30 billion, or 60 percent of the ₱50-billion funding, will be raised through a sustainability-linked format, so they are also slating the issuance of green bonds by October aside from bilateral loans within the fourth quarter.

He said earlier that they are scheduling their term funding program later, as interest rates are expected to go down in the next few months.

“We think [interest rates have] started to come down a bit, especially on the long end. Hopefully we’ll see another rate cut [by the Bangko Sentral ng Pilipinas (BSP) on Aug. 28] and then maybe one more towards the latter part of the year,” Bengzon said.

He said they are favoring the sustainability-linked financing format since this “has been well-received by the public and has received many awards across the region for its innovative nature.”

In terms of funding sources, he said 40 percent would be raised from capital markets, another 40 percent through bilateral facilities with banks, and the remaining 20 percent with a multilateral agency.

As Manila Bulletin reported last month, a World Bank document showed that the board of International Finance Corp. (IFC)—the World Bank Group’s (WBG) private-sector lending arm—was scheduled last July 3 to discuss its proposed investment in ALI for the “AyalaLand SLF2 Project.”

So far, no details are available on IFC’s website on the new SLF2 Project.

To recall, ALI last year secured a $250-million, or ₱14.3-billion, loan from IFC to fund its net-zero emissions ambition, including the “greening” of 10 malls in Cebu and Metro Manila, under their first SLF.

ALI is raising funds to pay for maturing debt as well as finance capital expenditures (capex) amounting to ₱95 billion, which is intended to increase its net income at double the growth rate of the Philippines’ gross domestic product (GDP).

This year’s capex, 12-percent higher than the ₱85 billion earmarked last year, will fund the expansion of ALI’s residential, estate, leasing, and hospitality businesses.

Of the ₱95-billion capex, 37 percent will be allocated for its residential business development, 25 percent earmarked for estate development, 23 percent allotted for leasing and hospitality ventures, while the remaining 15 percent will be set aside for land acquisitions and general corporate purposes.

ALI will be launching projects worth ₱100 billion, consisting of residential, commercial, and industrial properties for sale. It is also expanding its leasing assets by 170,000 square meters (sqm), of which 78,000 sqm will be in malls, 50,000 sqm in office spaces, and 44,000 sqm in logistics facilities.