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

Makati, Philippines – Ayala Land, Inc. (ALI), the country’s leading property developer, today marked a significant milestone with the successful listing of its follow-on P8 billion 10-year Sustainability-Linked Bond (SL-Bond) on the Philippine Dealing & Exchange Corp. (PDEx). This latest issuance is part of Ayala Land’s growing P28 billion sustainability-linked financing program, which began in July 2024 with the launch of the country’s first-ever SL-Bond.

With the new tranche, Ayala Land’s total SL-Bond issuance now reaches P14 billion, solidifying the company’s leadership role in sustainable finance in the Philippines. The bonds are linked to specific sustainability performance targets, further reinforcing Ayala Land’s commitment to achieving net-zero emissions by 2050 and advancing its broader environmental and social sustainability objectives.

Anna Ma. Margarita “Meean” Dy, President and CEO of Ayala Land, emphasized the significance of this achievement, noting how the company’s ability to raise capital through sustainability-linked bonds underscores the increasing recognition among investors 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 reflects Ayala Land’s commitment to environmental stewardship, but also signals the growing confidence of investors in aligning financial returns with sustainable impact.

Strengthening the Philippine Capital Markets

The listing of Ayala Land’s latest SL-Bond is a significant step forward for the Philippine capital markets, reinforcing the growing importance of sustainability in financing. The successful launch of the country’s first-ever SL-Bond in July 2024 opened the door for more sustainable financial instruments, and today’s follow-on issuance further strengthens the Philippines’ position in the ASEAN sustainable finance landscape.

SL-Bonds offer investors an interest rate that is tied to the issuer’s performance in meeting defined sustainability targets. This innovative approach allows Ayala Land to raise capital for long-term projects while simultaneously making tangible progress toward achieving its sustainability goals. The growing appetite for such instruments indicates a shift in how investors approach the intersection of financial returns and environmental, social, and governance (ESG) outcomes.

Ayala Land’s continued leadership in this space is helping to set a new standard for sustainable finance in the Philippines, inspiring other companies to consider sustainability-linked financing as a way to raise 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.

A Call for Collective Action

Ayala Land’s continued success in sustainability-linked financing reflects not only its leadership in sustainable development but also the growing recognition of the crucial role that responsible finance plays in building a more resilient future. The company’s efforts are helping to drive the transformation of the Philippine capital markets and encouraging other businesses to consider sustainability as a core driver of their growth strategies.

“Our sustainability journey continues. We will continue to pursue large, impactful projects that will improve the quality of life of Filipinos,” Dy said. “We are committed to being at the forefront of sustainable development in the country, and we call o