Ayala Land plans P50-billion fundraising in second half

Property developer Ayala Land Inc. (ALI) plans to raise P50 billion in the second half of 2025, with a significant portion coming from sustainability-linked financing.

ALI chief finance officer Augusto Bengzon said of the P50 billion, 60 percent or roughly P30 billion would come from sustainability-linked financing.

ALI’s planned fund raising activity is set to start within the month.

Bengzon said the company deliberately planned to raise the amount needed to finance maturing obligations and fund capital spending program in the second half of the year on expectations that interest rates would start to go down.

Bengzon said the company is optimistic about further interest rate cuts this year, including one this month and possibly another before the year ends.

ALI said the funds would be raised from a mix of sources, including 40 percent from the debt capital markets, including listings on the Philippine Dealing & Exchange Corp. (PDEx), 40 percent through bilateral facilities with banks and 20 percent via a multilateral agency.

The company reported strong recovery in its core affordable residential segment and is now preparing to start launching new residential projects in the second half.

“Because our sales for our core segment have actually been doing quite well, our inventory levels for core are now down to 17 months,” ALI president and chief executive Anna Ma. Margarita Bautista-Dy said.

“We feel we have breathing room to launch again. And that’s why on the second half, I think we’ll have three launches for core.”

Among projects slated for launching for the core segment is Avida’s first project in Katipunan, Quezon City.

ALI said the Katipunan project would feature significant design upgrades to reflect evolving customer preferences.  “We feel we want to bring something new and upgraded to the market,” Dy said.

Dy said that as the high-end segment of the market remains strong, two-thirds of planned launches in the second half would cater to the premium market, while a third would be for the core segment.

Two-thirds will also be horizontal projects, and a third vertical developments.

The company said that in the second quarter of the year, sales take-up of core residential business reached P14.6 billion, a 39-percent increase over the previous quarter.

It said that as of end-June, ALI’s residential inventory stood at 23 months, while inventory of core segment was down to 17 months, or at par with pre-pandemic levels and below industry average.