Friday, December 6, 2024
HomeFundingPhilippines-Based Ayala Land Secures $250 Million Loan from IFC

Philippines-Based Ayala Land Secures $250 Million Loan from IFC

The World Bank Group’s International Finance Corporation is giving developer Ayala Land up to PHP $250 million in a sustainability-linked loan (SLL) to promote green buildings in the Philippines.

IFC announced that it is cooperating with ALI on its first sustainability-linked finance package to help the company decarbonise its commercial real-estate portfolio as part of its efforts to grow the Philippine green development market.

The loan is tied to two sustainability performance targets: certification of 1.5 million square metres of ALI’s office portfolio with IFC’s EDGE Zero Carbon Certification by 2025, up from 350,000 square metres now.

The portfolio is now the biggest in the Philippines to receive the EDGE Zero Carbon certification. The second goal is to cut greenhouse gas emissions by 42% throughout all of ALI’s commercial real estate holdings, which includes hotels, offices, and shopping centres, by the end of 2030.

Read also- Singapore-Based Chitose Group secures Around $6.2 Million in Funding

In order to attain these goals, ALI plans to incorporate a range of energy- and water-efficient retrofit techniques, such as passive building design strategies, low flow water fixtures, water harvesting and recycling systems, and energy-efficient lighting and cooling systems.

The loan is a component of ALI’s wider sustainability-linked finance programme, which also involves the first-ever sustainability-linked bond issuance in the nation.

“Together with IFC, we’ve already built the largest EDGE Zero Carbon office building portfolio in the Philippines, aligning with the Ayala Group’s net zero by 2050 agenda, This landmark investment ensures we keep the momentum towards portfolio decarbonization, further deepening our shared commitment to a greener property sector in the Philippines,” said Meean Dy, President and Chief Executive Officer of ALI.

In recent years, IFC has worked with ALI to enhance its sustainable finance and green-building capacity. Ayala Land Hotels & Resorts Corp (AHRC), ALI’s hospitality business, signed a deal with IFC in April 2024 to become the first Philippine hotel group to pursue EDGE Zero Carbon accreditation by 2026, after ALI and AREIT’s September 2023 promise.

IFC and ALI developed SLL and SLB sustainability-linked performance targets.

“Ayala Land is a sustainability leader in the property sector in the Philippines, with a steadfast commitment to green their entire portfolio, We are proud to support the company on this landmark investment, which we hope will also encourage other industry players to join us in the green building movement,” said Jean-Marc Arbogast, Country Manager for the Philippines at IFC.

The largest worldwide private sector development institution in emerging markets is IFC. The organisation creates markets and opportunities in developing countries in over 100 countries utilising its cash, experience, and influence.

Read also- India-Based ByteXL Secures $5.9 Million in Series A Round Funding

IFC committed a record $43.7 billion to private enterprises and financial institutions in developing countries in fiscal year 2023, using the private sector’s potential to reduce extreme poverty and increase shared prosperity as economies cope with global mounting challenges.

About Ayala Land

Ayala Land, Inc. is a major Philippine property developer. Master-planned communities encourage sustainable growth and long-term benefit for residents, investors, and stakeholders.

- Advertisement -
RELATED ARTICLES
- Advertisment -

Most Popular