IFC lends P14.5 billion to Ayala Land for decarbonization efforts

The International Finance Corp. (IFC) is making a significant investment in Ayala Land Inc. (ALI) to support the company’s efforts to decarbonize its commercial real estate portfolio. In a statement, the private sector arm of the World Bank Group announced that it is providing up to P14.5 billion in the form of a sustainability-linked loan for ALI.

This loan is part of a larger sustainability-linked financing program for ALI, which includes the issuance of its first sustainability-linked bond in the country. The investment is tied to two sustainability performance targets, including certifying 1.5 million square meters of ALI’s existing office portfolio with IFC’s EDGE Zero Carbon Certification by the end of 2025.

ALI’s portfolio is currently the largest to be EDGE Zero Carbon-certified in the country. The second target involves reducing greenhouse gas emissions from ALI’s commercial real estate portfolio, including malls, offices, and hotels, by 42 percent by the end of 2030. To achieve these goals, ALI will be implementing energy and water-saving retrofit measures, such as using energy-efficient lighting and cooling systems, passive building design measures, and water harvesting and recycling systems.

ALI President and CEO Meean Dy expressed excitement about the partnership with IFC, stating, “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 collaboration with IFC is part of ALI’s ongoing efforts to develop sustainable finance and green-building initiatives.

In April, ALI’s hospitality arm, Ayala Land Hotels and Resorts Corp., signed an agreement with IFC to become the first hotel group in the Philippines to target EDGE Zero Carbon certification by 2026. This partnership highlights ALI’s commitment to sustainability and environmental responsibility in its operations.