Ayala Land eyes raising P55B through sustainability bonds, credit lines

Property giant Ayala Land Inc. is embarking on a P55-billion capital-raising initiative this year to fund its expansion projects and settle maturing debts.

At a press briefing in Makati City on Thursday, Ayala Land chief finance officer Augusto Bengzon disclosed that the majority, or P30 billion, of capital to be raised “will go to support our P95-billion capex [capital expenditure] program.”

For 2025, the property developer is earmarking P95 billion in capex, higher than the P84.6 billion spent in 2024. Ayala Land is allocating 37% of its corporate budget for residential projects, 25% for estate development, 23% for leasing and hospitality, and 15% for land banking and general purposes.

The remaining P25 billion of the P55-billion target capital to be raised “will go towards the refinancing of maturing obligations,” according to Bengzon.

The Ayala Land executive added that its sustainability-linked financing program will provide 60% of the target amount.

“Under the sustainability-linked financing program, roughly 50% of that will be with a multilateral agency. The other 50% will be through the capital markets…or sustainability-linked bonds, which will be listed in the fixed income capital market,” Bengzon said.

The remaining 40% of the capital raising plan will be sourced from ''bilateral credit facilities,'' he added.

In 2024, Ayala Land reported a net income of P28.2 billion, up 15% year-on-year, supported by strong performance across its diversified portfolio.

Last year, the property developer spent 46% of its P84.6-billion capex on the buildout of residential projects, 27% on estate development, 15% on leasing and hospitality assets, and 12% on land acquisition commitments. — VBL, GMA Integrated News