MANILA, Philippines — The International Finance Corp. (IFC) is lending up to P14.5 billion to property giant 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 said it is investing up to P14.5 billion in the form of a sustainability-linked loan for ALI.
The loan forms part of a larger sustainability-linked financing program for ALI, which includes the issuance of its first sustainability-linked bond in the country.
It is also linked to two sustainability performance targets with the first involving certifying 1.5 million-square meters of ALI’s existing office portfolio by the end of 2025 with IFC’s EDGE Zero Carbon Certification, increasing from around 350,000 square meters at present.
ALI’s portfolio is the currently the largest to be EDGE Zero Carbon-certified in the country.
The second target involves reducing by 42 percent the greenhouse-gas emissions of ALI’s commercial real estate portfolio including malls, offices and hotels by the end of 2030.
To achieve these goals, ALI will be implementing energy and water-saving retrofit measures. These will include using energy-efficient lighting and cooling systems, passive building design measures, low flow water fixtures and water harvesting and recycling systems.
“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,” ALI president and CEO Meean Dy said.
IFC and ALI have been working together to develop the latter’s capacity for sustainable finance and green-building initiatives.
Last 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.