Ayala Corp Secures $200 Million Loan from Metrobank to Boost Strategic Investments
Ayala Corporation (AC), one of the Philippines’ most diversified conglomerates, has secured a significant $200 million credit facility from Metropolitan Bank & Trust Co. (MBT). This long-term loan will bolster Ayala's continued investments in high-growth sectors such as technology, health, logistics, and mobility. The agreement underscores the decades-long relationship between the two companies, marking a milestone in their shared commitment to fostering economic development in the Philippines.
Strategic Use of Loan Proceeds
Ayala plans to use the proceeds of the loan to further refine its business portfolio, focusing on investments that are expected to drive future growth. With a sharp focus on emerging industries, the corporation seeks to position itself as a leader in areas such as payments technology, healthcare solutions, and sustainable logistics, which are becoming increasingly vital in today’s rapidly evolving landscape.
"This loan agreement with Metrobank will allow us to sharpen our portfolio, ensuring that capital is allocated to key business winners,” said Alberto de Larrazabal, Ayala’s Chief Financial Officer. "We are fortunate to have a partner like Metrobank, which has supported us for over 30 years, enabling us to build businesses that help people thrive."
Metrobank’s Role as a Long-standing Partner
Metrobank, one of the largest financial institutions in the country, has a history of providing credit to Ayala for projects in various industries. These include real estate development, renewable energy initiatives, and the establishment of data centers—sectors critical to the nation’s infrastructure and economic progress.
Mary Mylene Caparas, Metrobank’s head of institutional banking, highlighted the strong partnership between the two companies. “We share Ayala’s mission of enabling both individuals and businesses in the Philippines. This agreement reflects our commitment to supporting Ayala’s growth aspirations, particularly in driving innovation and contributing to the country’s social and economic development,” Caparas said.
Ayala's Expanding Portfolio and Investment Plans
The loan is just one component of Ayala’s broader strategy for sustained growth. The conglomerate has earmarked PHP 284 billion for capital expenditures in 2024, a substantial increase from its previous year’s budget. This increased allocation is directed toward expanding key business units, such as Ayala Land Inc (ALI). and ACEN Corporation (ACEN), its renewable energy arm.
Ayala Land has committed PHP 100 billion to support real estate projects, while ACEN plans to invest around PHP 72 billion to fuel its renewable energy initiatives. Globe Telecom (GLO), another key subsidiary, has scaled down its capital expenditure to PHP 55 billion as it has already completed significant infrastructure upgrades.
In addition to these investments, Ayala is also in the process of raising PHP 15 billion through the issuance of preferred shares, which will help further strengthen its financial position.
A Milestone Year for Ayala
2024 is shaping up to be a pivotal year for Ayala. According to the company's CEO, Cezar P. Consing, Ayala has already seen strong financial performance in 2023, surpassing pre-pandemic levels of income. “This year’s momentum is encouraging, and we expect it to continue across our various businesses," Consing noted.
As Ayala continues to adapt to the changing business landscape, its strategic partnerships and sound financial management, with support from institutions like Metrobank, will be crucial to its ongoing success.