Property developer Ayala Land Inc. (ALI) is mounting a P55-billion fundraising push this year to bankroll expansion plans and refinance maturing debts, a move its finance chief described as the driver of a “very busy year ahead.”
“This year, we intend to raise a total of P55 billion, P25 billion of which will go towards the refinancing of maturing obligations. And P30 billion will go to the support of P95 billion in CAPEX (capital expenditure) program, which we disclosed earlier this year,” ALI’s chief financial officer Augusto Bengzon said during a media briefing on Thursday.
Bengzon noted that 60 percent of the planned fundraising will come from the company’s sustainability-linked financing program, while the remaining 40 percent will come from bilateral credit facilities with relationship banks.
“Going back to the 60 percent, which will be through our sustainability-linked financing program, roughly about 50 percent of that will be with a multilateral agency. And the other 50 percent would be via the capital markets,” Bengzon said.
The capital markets component will involve the issuance of a sustainability-linked bond, which ALI intends to list on the fixed-income exchange.
“We do have a hectic year ahead of us,” Bengzon added.
ALI earlier announced a P95-billion spending program to support ongoing residential, commercial and mixed-use developments nationwide.
This year alone, the company also plans to roll out P100 billion worth of new projects, allocating P80 billion to residential developments and P20 billion to industrial and commercial ventures.
ALI reported a 15 percent rise in net income to P28.2 billion in 2024, with revenues climbing 21 percent to a record P180.7 billion. Property development drove growth, with residential sales up 23 percent to P94.9 billion and commercial and industrial lot sales up 34 percent to P14.6 billion.
The company launched P80.5 billion worth of projects, mostly outside Metro Manila. Leasing and hospitality revenues rose 9 percent to P45.6 billion, while capex hit P84.6 billion, nearly half spent on residential developments.