Ayala Land, a real estate firm based in the Philippines, is gearing up for a massive financial move, aiming to raise up to P50 billion pesos (roughly around $900 million) in debt capital this year. This strategic move is aimed at refinancing maturing obligations and funding general corporate requirements.
The company plans to raise the funds through the issuance of retail bonds and corporate notes for listing on the Philippine Dealing and Exchange Corp. Additionally, they intend to execute bilateral term loans to achieve this goal.
ALI’s CFO, Augusto Bengzon, explained that they plan to access both bank lines and debt capital markets, splitting the P50 billion roughly in half. Half of this amount, P25 billion, will go towards financing their capital expenditures for the year, while the other half will be used for refinancing maturing debt.
Their strategy includes timing the market, aiming to take advantage of potentially lower interest rates in the second half of the year. Bengzon highlighted the importance of securing long-term fixed-rate financing and expressed confidence in accessing financing at the right time.
ALI had a successful 2023, with earnings rising by nearly a third, driven by strong property demand and increased consumer activity. Net income reached P24.5 billion, up 24.5 percent year-on-year, and revenues grew by 18 percent to P148.9 billion.
The company’s property development revenues increased by 14 percent to P92.3 billion, supported by steady bookings and higher completion of residential projects and offices for sale. Leasing and hospitality revenues also expanded, with a 25 percent increase to P41.7 billion, driven by improved occupancy and rents.
ALI’s president and CEO, Anna Ma. Margarita Bautista-Dy, expressed optimism about the opportunities ahead but acknowledged the challenges posed by a higher-for-longer interest rate regime. She emphasized the company’s focus on quality and its commitment to bringing high-value development products to the market.
(Source: Manila Times | Philippine Star | Inquirer)
