Property giant Ayala Land Inc. (ALI) is raising as much as P15 billion from the offering of sustainability-linked bonds.
In a stock exchange filing, ALI said it received from the Securities and Exchange Commission (SEC) the certificate of permit to offer securities for sale for its ASEAN sustainability-linked bonds.
The sustainability-linked bonds consist of a principal amount of P10 billion, with an oversubscription option of up to P5 billion, comprising of 6.0671 percent per annum Series C bonds due 2030 and 6.3192 percent per annum Series D bonds due 2035.
Net proceeds of the offer are intended to be used by ALI to finance capital expenditure requirements and debt refinancing.
The offer period commenced on Oct. 9 and will end on Oct. 15. The issuance and listing will be on Oct. 23.
Tapped as joint lead underwriters and bookrunners are BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., East West Banking Corp., First Metro Investment Corp., PNB Capital and Investment Corp., RCBC Capital Corp. and Security Bank Capital Investment Corp.
The issuance represents the fourth tranche of ALI’s existing P50 billion shelf registration for the offering and sale of debt securities approved by the SEC.
Under the program, fixed-rate bonds with a principal amount of P10.25 billion were issued as the first tranche on June 26, 2023.
It was followed by the issuance of sustainability-linked bonds with a principal amount of P6 billion on July 18, 2024 and another P8 billion sustainability-linked bonds on Nov. 13, 2024.
ALI’s sustainability-linked financing program has been well received by the public and has received many awards across the region.
Sustainability-linked bonds offer investors an interest rate that is tied to the issuer’s performance in meeting defined sustainability targets.