Ayala Land’s bid to develop projects that are more sustainable and climate-resilient got a boost recently as the World Bank’s International Finance Corp., (IFC) announced its extension of a P12.87 billion ($225 million) loan to the realtor.
The loan will fund the development of Greenbelt 1 in Makati and Ayala Malls Evo City in Cavite.
“In addition, IFC will collaborate with Ayala Land to implement the Building Resilience Index (BRI) across 50 commercial and industrial properties, making Ayala Land Inc. the first developer globally to embed BRI into its project development process,” the IFC said in a statement Friday.
The BRI provides the building sector a web-based hazard mapping and resilience assessment framework. Developed by the IFC, it provides a blended approaches to screening projects for natural hazards and climate change events.
The loan builds on the P14.5 billion ($250 million) sustainability-linked package that IFC extended to Ayala Land last year to finance the company’s energy and water-saving retrofit measures. These include energy-efficient lighting and cooling systems, passive building design measures, low flow water fixtures, and water harvesting and recycling systems.
The latest fund will improve 89,000 square meters (sq.m.) of Ayala Land’s retail space.
IFC in a statement said the investment will 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, “creating vibrant commercial ecosystems in both districts.”
“By embedding sustainability into our projects, we enhance customer experience, protect long-term value for our stakeholders, and set new benchmarks for the industry,” Meean Dy, Ayala Land chief executive officer (CEO) and president, said.
“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 declared.
Ayala Land said the loan is also linked to targets that include 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, Ayala Land 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 company said. “The partnership reinforces IFC and Ayala Land’s joint commitment to shaping a more sustainable and climate-resilient built environment in the Philippines.”
The sustainability loan is expected to supplement the P15 billion sustainability bond Ayala Land is also looking to raise, of which local credit rating agency, Philippine Rating Services Corp. (PhilRatings), assigned an issue credit rating of PRS Aaa, with a stable outlook on Tuesday last week.
The bond is divided into an initial P10 billion and another P5 billion for the oversubscription option.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk, under the PhilRatings grading system, summing up Ayala Land’s “extremely strong” capacity to meet financial commitment on the obligation.
The stable outlook on the other had indicated that the assigned rating is likely to be maintained or to remain unchanged in the next 12 months.
