IFC Partners with Ayala Land for $250 Million Sustainability-Linked Financing to Boost Green Buildings in the Philippines
- IFC’s $250 million sustainability-linked loan aims to decarbonize Ayala Land’s real-estate portfolio.
- Targets include certifying 1.5 million square meters with EDGE Zero Carbon Certification by 2025 and reducing GHG emissions by 42% by 2030.
- ALI to implement energy and water-saving retrofits across its commercial properties.
The International Finance Corporation (IFC) and Ayala Land Inc. (ALI) are joining forces to advance green development in the Philippines through the first sustainability-linked financing package. This initiative supports ALI’s efforts to decarbonize its commercial real-estate portfolio, bolstering the market for green buildings in the country.
IFC, a member of the World Bank Group, is investing up to Php 14.5 billion ($250 million) in a sustainability-linked loan (SLL) for ALI. This loan is tied to two primary sustainability performance targets. Firstly, ALI aims to certify 1.5 million square meters of its existing office portfolio with IFC’s EDGE Zero Carbon Certification by the end of 2025, significantly up from the current 350,000 square meters. Secondly, ALI plans to cut greenhouse gas (GHG) emissions by 42% across its commercial real-estate portfolio, which includes malls, offices, and hotels, by 2030.
To meet these ambitious goals, ALI will implement a variety of energy and water-saving measures. These include energy-efficient lighting and cooling systems, passive building design strategies, low-flow water fixtures, and systems for water harvesting and recycling.
This loan is part of a larger sustainability-linked financing program for ALI, which also features the issuance of its first sustainability-linked bond (SLB) in the Philippines.
“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,” stated Meean Dy, President and CEO of ALI. “This landmark investment ensures we keep the momentum towards portfolio decarbonization, further deepening our shared commitment to a greener property sector in the Philippines.“
In recent years, IFC has collaborated with ALI to enhance its capacity for sustainable finance and green-building initiatives. For instance, in April 2024, Ayala Land Hotels and Resorts Corp (AHRC), ALI’s hospitality division, committed to becoming the first hotel group in the Philippines to achieve EDGE Zero Carbon certification by 2026. This follows a similar commitment by ALI and AREIT in September 2023.
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“Ayala Land is a sustainability leader in the property sector in the Philippines, with a steadfast commitment to green their entire portfolio,” said Jean-Marc Arbogast, Country Manager for the Philippines at IFC. “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.“
This partnership marks a significant milestone in promoting sustainable development and demonstrates a strong commitment to environmental stewardship in the Philippines’ real estate sector.
