The International Finance Corp. (IFC) said Friday it is providing a second sustainability-linked loan (SLL) of up to P12.87 billion ($225 million) to Ayala Land Inc, marking another milestone in sustainable finance in the real estate sector.
The loan will fund the development of Greenbelt 1 in Makati and Ayala Malls Evo City in Cavite, two large-scale commercial projects with an estimated gross leasable area of 89,000 square meters.
IFC said it would also collaborate with ALI to implement the Building Resilience Index (BRI) across 50 commercial and industrial properties, making ALI the first developer globally to embed BRI into its project development process.
The agreement builds on IFC’s inaugural sustainability-linked loan to ALI in 2024, which forms part of the company’s broader sustainability-linked financing program.
The loan is linked to ALI’s achievement of specific sustainability performance targets, including reducing greenhouse gas emissions by 42 percent across its commercial leasing portfolio by 2030, and the EDGE Zero Carbon certification of 1.5 million square meters of office space by the end of 2025.
By leveraging IFC’s BRI and EDGE certification tools, ALI aims to address both climate mitigation and adaptation, positioning itself as the developer with the most significant EDGE Zero Carbon-certified and BRI-rated portfolio globally.
The investment is expected to generate over 1,000 direct jobs during construction and operations, while merchant activities in the new properties are projected to employ about 3,000 workers.
“IFC is proud to deepen our partnership with Ayala Land as it pushes the frontier for sustainable real estate in the Philippines,” said Amena Arif, IFC country manager for the Philippines.
“This programmatic approach not only mobilizes financing, but also creates jobs and strengthens resilience in a country prone to extreme weather events,” said Arif.
“By embedding sustainability into our projects, we enhance customer experience, protect long-term value for our stakeholders, and set new benchmarks for the industry,” said Meean Dy, president and chief executive of ALI.
“Our partnership with IFC demonstrates that sustainable financing is not only achievable, it’s scalable. This is a model for how we will fund our growth in the future,” she said.
