The International Finance Corporation ( IFC ) is providing a second sustainability-linked loan ( SLL ) of up to 12.87 billion pesos ( US$225 million ) to the Philippines’ leading real estate developer Ayala Land Inc ( ALI ), representing another milestone in sustainable financing in the country’s real estate sector.

The SLL, announced on August 29, also marked an expansion of the partnership between IFC and ALI to scale up green and resilient buildings in the Philippines – a strategic move that underscores both sustainability and financial innovation. This is the second SLL provided by IFC to ALI following the 14.5 billion pesos facility extended in July 2024.

The loan proceeds will fund the development of ALI’s two malls, Greenbelt 1 in the central business district of Makati and Ayala Malls’ Evo City in the southern province of Cavite, two large-scale commercial projects with an estimated gross leasable area of 89,000 square metres. In addition, IFC will collaborate with ALI to implement the Building Resilience Index ( BRI ) across 50 commercial and industrial properties, making ALI the first developer globally to embed BRI into its project development process.

The SLL is linked to ALI’s achievement of specific sustainability performance targets, including reducing greenhouse gas ( GHG ) emissions by 42% across its commercial leasing portfolio by 2030, and an EDGE Zero Carbon certification for 1.5 million square metres of office space by the end of 2025.

Commenting on the latest deal, IFC country manager for the Philippines Amena Arif notes how ALI is pushing the frontier for sustainable real estate in the Philippines. “This programmatic approach not only mobilizes financing but also creates jobs and strengthens resilience in a country prone to extreme weather events,” she points out.

The financing is expected to generate over 1,000 direct jobs during construction and operations, while merchant activities in the new properties are projected to employ about 3,000 workers, creating vibrant commercial ecosystems in both districts.

Anna Ma. Margarita Dy, president and CEO of ALI, adds: “By embedding sustainability into our projects, we enhance customer experience, protect long-term value for our stakeholders, and set new benchmarks for the industry. Our partnership with IFC demonstrates that sustainable financing is not only achievable, it’s scalable. This is a model for how we will fund our growth in the future.”

By leveraging IFC’s BRI and EDGE certification tools, ALI aims to address both climate mitigation and adaptation – positioning itself as the developer with the most significant EDGE Zero Carbon-certified and BRI-rated portfolio globally. The partnership reinforces IFC and ALI’s joint commitment to shaping a more sustainable and climate-resilient built environment in the Philippines.

An innovation of IFC, BRI is a web-based hazard mapping and resilience assessment framework that evaluates location-specific, climate-related risks for a real estate project or portfolio, as well as the resilience measures implemented. The first of its kind in the world, BRI makes it easy for various stakeholders, including developers, locators, homebuyers, financial institutions, investors, insurers and governments to assess, improve, and communicate the resilience of buildings.