Property developer Ayala Land Inc. (ALI) plans to issue another P10 billion worth of sustainability-linked bonds, according to a top executive.
ALI vice president and treasurer Jose Eduardo Quimpo II said the company filed with the Securities and Exchange Commission (SEC) on Tuesday the registration statement for its planned bond offering.
The bonds will be issued from the company’s P50-billion shelf securities program approved by the SEC in 2023.
This is the second time for ALI to issue sustainability-linked bonds this year. In June. ALI raised P6 billion from the issuance of 10-year sustainability-linked bonds and P14.5 billion from sustainability-linked loan from the International Finance Corp. (IFC).
Philippine Ratings Services Corp. (PhilRatings) said it assigned a credit issue rating of PRS Aaa with a stable outlook on ALI’s planned bond offering. Obligations rated PRS Aaa are of highest quality with minimal credit risk. This means that the company’s capacity to meet its financial obligation is extremely strong.
PhilRatings said that in assigning the rating, it considered ALI’s well-diversified portfolio, experienced and competent management team, the company’s solid commitment to sustainability, robust profitability, healthy cash-flows and sound capital structure.
ALI earlier said it planned to borrow between P20 billion and P30 billion through the debt market in the second half of 2024 for funding requirements.
The property firm allotted P100 billion for 2024 capital expenditures, up 16 percent from P86 billion in 2023.
It spent P36.5 billion in the first half of the year, of which 51 percent went to residential projects, 27 percent to estate development, 11 percent to commercial leasing assets and 11 percent to land acquisition commitments.
ALI’s net income grew 15 percent to P13.1 billion in the first six months of 2024, as revenues climbed 28 percent to P84.3 billion.
