IFC, a member of the World Bank Group and the largest global development institution focused on the private sector in emerging markets, is investing up to Php 14.5 billion ($250 million) in the form of a sustainability-linked loan (SLL) for ALI.
The loan is linked to two specific sustainability performance targets: the first is to certify 1.5 million-square meters of ALI's existing office portfolio by the end of 2025 with IFC's EDGE Zero Carbon Certification[1], up from around 350,000 square-meters currently.
The portfolio is already the largest EDGE Zero Carbon-certified portfolio in the Philippines. The second target is to reduce greenhouse-gas emissions by 42 percent across ALI's commercial real-estate portfolio by the end of 2030, which includes malls, offices, and hotels.
To achieve these outcomes, ALI will implement a combination of energy and water-saving retrofit measures, including energy-efficient lighting and cooling systems, passive building design measures, low flow water fixtures, and water harvesting and recycling systems.
The loan is part of a larger sustainability-linked financing program for ALI, which also includes the issuance of its first sustainability-linked bond (SLB) in the country.
IFC has been working with ALI in recent years to develop its in-house capacity for sustainable finance and green-building initiatives. In April 2024, Ayala Land Hotels and Resorts Corp (AHRC), ALI's hospitality arm, signed an agreement with IFC to commit to becoming the first hotel group in the Philippines to target EDGE Zero Carbon certification by 2026, following a similar commitment by ALI and AREIT in September 2023. IFC also worked with ALI to develop the sustainability-linked performance targets for the SLL and SLB.