Ayala Land Plans Major Fundraising for Growth
Ayala Land, Inc. (ALI) has announced an ambitious plan to raise a total of P50 billion during the second half of the year to fuel its various growth initiatives. The fundraising efforts are slated to begin this month, with a significant portion of the capital being sourced through a sustainability-linked financing format. According to the company’s chief finance officer, P30 billion of the planned amount will come from this environmentally and socially conscious financial instrument. The remaining funds will be secured from a diverse combination of sources, including debt capital markets, bilateral bank facilities, and a multilateral agency, showcasing a well-rounded and strategic approach to capital procurement.
Timing Capital Raise for Favorable Market Conditions
The company’s decision to launch its major fundraising program in the latter half of the year is a calculated move based on its expectation of a more favorable interest rate environment. Ayala Land is anticipating that the Bangko Sentral ng Pilipinas (BSP) will cut interest rates in the near future. This strategic timing is intended to capitalize on the lower cost of borrowing that would result from such a rate cut, making the fundraising more efficient and cost-effective. This expectation is supported by previous statements from the BSP Governor, who has indicated that a rate cut remains a possibility for the next policy review scheduled for later in August, reinforcing Ayala Land’s optimistic outlook.
Fueling New Property Development Projects
In line with its robust growth strategy, Ayala Land aims to launch a substantial P57 billion worth of new property development projects during the second half of the year. The majority of these new developments will be concentrated in the premium and horizontal project segments, reflecting the company’s focus on high-value properties. The planned project launches are supported by the company’s strong financial performance in the first half of the year, which saw an 8% increase in net income to P14.2 billion. This profit growth was achieved despite a minor decrease in consolidated revenue, demonstrating the company’s ability to maintain profitability and secure a solid financial foundation for its future expansion plans.
