Real estate giant Ayala Land Inc. (ALI) announced plans to raise ₱55 billion in 2025 to support its aggressive capital expenditure program and refinance maturing obligations, underscoring its strategic pivot toward high-end real estate and commercial land development amid shifting market dynamics.
At the company’s annual stockholders’ meeting, ALI chief finance officer Augusto D. Bengzon said the funding mix will consist of ₱30 billion in new capital to bankroll a ₱95-billion capex program, with the remaining ₱25 billion earmarked for debt refinancing.
“We do have a very busy year ahead of us,” Bengzon said, highlighting that 60 percent of the ₱55 billion will come from the company’s sustainability-linked financing program, with the rest sourced from bilateral credit lines with relationship banks.
Half of the sustainability-linked funding will come via a bond issuance to be listed on the fixed income exchange, while the other half will be sourced from a multilateral agency, Bengzon added, marking a deepening of ALI’s alignment with ESG-focused capital markets.
On the commercial front, ALI president and CEO Anna Ma. Margarita B. Dy said the company is doubling down on the luxury residential and commercial-industrial segments, citing continued headwinds in the middle-income market from elevated interest rates and localized oversupply.
“Our focus on the premium segment will continue—specifically, high-end residential and more horizontal developments,” Dy said. She noted that commercial and industrial lot sales, currently accounting for 10% of total sales, will be a key growth driver in 2025 as ALI targets increased activity from business buyers.
ALI is setting its sights on growth at twice the national GDP rate, translating to a 12 percent target in a projected 6 percent GDP environment, a bet anchored on rising affluence and resilient demand at the top end of the market.
Despite its optimistic outlook, Dy flagged external risks, notably uncertainty linked to global trade tensions, including Trump-era tariffs that continue to weigh on investor sentiment. “Hopefully this gets resolved or at least quiets down in the next few months,” she said.
The funding and strategic moves reinforce ALI’s intent to navigate macroeconomic volatility by leaning into high-margin segments and leveraging sustainable finance—a sign of evolving investor and market priorities in the post-pandemic real estate landscape.
