High-end property developer Ayala Land Inc. has obtained P1-billion financing from Land Bank of the Philippines to partially fund its capital expenditure program this year.

Ayala Land said in a disclosure to the stock exchange that the P1-billion facility, which will take the form of privately placed floating rate corporate notes issued by the company, would have a maturity of seven years with initial availment to be drawn within six months from the date of signing.

“Proceeds from the facility will be used by the company for general corporate purposes as well as financing its capital expenditure program,” Ayala Land said.

State-run LandBank was the sole lender and arranger of the facility.

Ayala Land earlier said it would spend P17.4 billion in capital expenditure this year, mainly for the construction of residential condominium, office buildings catering to business process outsourcing companies, shopping centers and landbanking.

Ayala Land early this year raised P3.4 billion in debt and P2.4 billion from private placement of a mix of 5, 7, and 10-year fixed rate corporate notes to fund the capital outlay program. It also raised P2.7 billion from the sale of account receivables to several financial institutions.

Ayala Land had cash of P15.4 billion at the end of 2008.

The company this year is launching 2,000 residential units that will primarily cater to middle- and low-income brackets.

The company noted that while sales of high-end residential condominiums had been affected by the global economic slowdown, turnover of housing units catering to middle- and low-income earners had remained strong.