Property developer Ayala Land Inc. plans to raise between P20 billion and P30 billion through the debt market in the second half of 2024 for its funding requirements.
ALI chief finance officer Augusto Bengzon said the borrowings would be a combination of bank debt and regular bond issuances.
ALI earlier programmed to borrow P50 billion this year, including P20 billion that would be used for refinancing.
Bengzon said the company had yet to trigger the P30-billion new borrowing as the company was prudent with its capital expenditure spending in the first half, while internally-generated funds strengthened.
“The budget could be P20 [billion] to P30 billion of debt to be raised in the last semester. That is what we penciled in, and we will finalize the actual funding the program,” Bengzon said.
The property firm allocated P100 billion for capital expenditures in the first half of the year. As of end-June, it spent P36.5 billion, of which 51 percent was spent on residential projects, 27 percent on estate development, 11 percent on commercial leasing assets and 11 percent on land acquisition commitments.
Bengzon said it is keeping its P100-billion capex target for the year as the company plans to ramp up its spending in the second half amid improving market conditions.
ALI said its net income in the first six months of the year grew 15 percent to P13.1 billion as revenues climbed 28 percent to P84.3 billion.
ALI raised in July P20.5 billion from the issuance of sustainability-linked financing program.
Meanwhile, ALI also reported that Vermosa, its sixth largest estate, hosted the groundbreaking ceremony for the future home of the Cavite chapter headquarters of the Philippine Red Cross (PRC). This will serve the province’s first and primary blood center in Imus.
The three-story office will house the Blood Center with a capacity to host large blood drives and conduct testing and processing of blood.
The Imus branch in Vermosa will also be the new main hub for the PRC Cavite Chapter’s operations and will house a modern disaster communication center and storage for disaster response equipment; multipurpose facilities for trainings and workshops; and meeting spaces for support groups and community gatherings.
