Ayala Land Lists P8 Billion Sustainability-Linked Bonds, Strengthens Commitment to Sustainable Growth in the Philippines

​Ayala Land, Inc. (ALI) achieved a key milestone by successfully listing its follow-on P8 billion 10-year Sustainability-Linked Bond (SL-Bond) on the Philippine Dealing & Exchange Corp. This latest offering is part of Ayala Land's growing P28 billion sustainability-linked financing program, which began in July 2024 with the issuing of the country's first SL-Bond

With the additional tranche, Ayala Land's total SL-Bond issuance now totals P14 billion, cementing the company's leading position in sustainable financing in the Philippines. The bonds are connected to particular sustainability performance benchmarks, strengthening Ayala Land's commitment to achieving net-zero emissions by 2050 while also furthering its overall environmental and social sustainability goals.

Anna Ma. Margarita "Meean" Dy, President and CEO of Ayala Land, emphasized the significance of this achievement, stating that the company's ability to raise capital through sustainability-linked bonds reflects investors' growing recognition that sustainable finance is critical to addressing urgent global challenges.

“The success of this sustainability-linked financing program, novel as it may be in the country, shows that the Philippine investing community realizes that sustainable finance is integral to the urgent pursuit of sustainability,” said Dy.

This milestone not only illustrates Ayala Land's commitment to environmental stewardship but also demonstrates investors' increased trust in matching financial returns with long-term impact.
 
The listing of Ayala Land's most recent SL-Bond is a significant step forward for the Philippine capital markets, highlighting the rising relevance of sustainability in financing. The successful launch of the country's first-ever SL-Bond in July 2024 paved the way for more sustainable financial instruments, and the latest follow-on issue reinforces the Philippines' position in the ASEAN sustainable finance scene.

SL-Bonds provide investors with an interest rate that is linked to the issuer's success in reaching established sustainability criteria. This innovative approach enables Ayala Land to secure financing for long-term projects while also making demonstrable progress toward its environmental goals. The increased demand for such instruments reflects a shift in how investors view the relationship between financial returns and environmental, social, and governance (ESG) outcomes.
 
Ayala Land's continued leadership in this space is helping to establish a new standard for sustainable finance in the Philippines, inspiring other businesses to consider sustainability-linked financing as a means of raising capital while aligning their growth strategies with the global push for climate action and responsible development.
 
Ayala Land’s Commitment to Sustainability

As part of its ongoing sustainability efforts, Ayala Land has integrated sustainability into its core business practices, which include:

• ·Net-Zero Emissions by 2050: Ayala Land is committed to reducing its carbon footprint by decarbonizing its supply chain, increasing its use of renewable energy, and adopting innovative green technologies. To date, 20 Ayala Land projects have transitioned to solar energy, with plans to convert 221 more by 2027.
• Green Building and Technological Innovation: Through its construction arm, MDC, Ayala Land is advancing the use of electric construction equipment and producing green concrete that reduces carbon emissions by 24% compared to conventional concrete. MDC is also integrating circular economy principles in its developments, ensuring resource efficiency and minimal environmental impact.
• Sustainable Development Goals: At the heart of Ayala Land’s business is its commitment to sustainable urban development. The company focuses on four core areas—site resilience, pedestrian mobility and transit connectivity, resource efficiency, and local economic growth—to ensure its developments are environmentally responsible, socially inclusive, and economically beneficial for communities.
• Accountability and Transparency: As the first publicly listed Philippine property developer to receive Science-Based Targets initiative (SBTi) validation for its net-zero and near-term climate goals, Ayala Land is aligning its strategies with global climate targets. This includes supporting the Paris Agreement’s goal to limit global warming to 1.5°C above pre-industrial levels.