Arthaland readies P3-billion fixed-rate ASEAN green bond issuance

PROPERTY developer Arthaland Corp. plans to issue P3 billion worth of fixed-rate ASEAN green bonds possibly late this year to raise funds for eligible “green” projects.

In a disclosure to the Philippine Stock Exchange on Wednesday, the company said it had filed the preliminary prospectus for the bond issuance with the Securities and Exchange Commission (SEC).

Arthaland’s latest bond offering is the remaining portion of its shelf-registered debt program of up to P6 billion that was approved by the SEC in January 2020.

The company filed the prospectus with the SEC on Tuesday “using Form 12-1 and not through Form 17-C” or the registration of securities that are to be sold or offered for sale by investment companies.

The green bonds will be offered through two tranches: a portion will have a five-year maturity while the rest will have a seven-year tenor.

Proceeds from an ASEAN green bond issuance are meant to be exclusively used to finance or refinance, in part or in full, eligible green projects that comply with regulatory standards.

Arthaland said the use of proceeds covers eligible green projects under Arthaland’s Green Finance Framework. It identified the funding to include additional investments in Zileya to develop its first residential project at the Makati Central Business District (CBD).

Proceeds will also be used for the required investment in companies that will develop the property for a third residential project at the Makati CBD, plus Project JL and Project Midtown.

It is also meant to partially fund scheduled repayments of a loan that financed the construction and development of Arthaland Century Pacific Tower.

The ASEAN green bonds are expected to be issued on Dec. 16 “or such other date as may be agreed upon by the issuer, the joint lead underwriters and joint bookrunners.”

The issuance is intended to be listed for electronic trading and settlement on the Philippine Dealing and Exchange Corp. on the issue date.

Arthaland tapped BDO Capital & Investment Corp. as the sole issue manager, while BDO Capital and PNB Capital and Investment Corp. are appointed as the joint lead underwriters and bookrunners for the offer.

On the stock market on Wednesday, shares in Arthaland closed higher by three centavos or 6% to P0.53 apiece. — Justine Irish D. Tabile