Arthaland Floating ₱3.8-B Fixed Rate ASEAN Green Bonds

In the face of, and to side-step the prevailing high interest rates, property developer Arthaland Corp. has opted to pursue borrowings this year to finance planned green projects in the medium term.

Photo Insert: Arthaland said the use of proceeds covers eligible green projects under Arthaland’s Green Finance Framework.

The firm has informed the Philippine Stock Exchange (PSE) regarding its issuance of P3 billion worth of fixed-rate ASEAN green bonds, possibly late this year. to raise funds for eligible “green” projects.

In its disclosure to the PSE, the company said it has filed with the Securities and Exchange Commission (SEC) the preliminary prospectus for the bond flotation. 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 SECon Oct. 19, 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 in 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, the company explained.

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 the Arthaland CenturyPacific 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 book-runners.”

The issuance is intended to be listed for electronic trading and settlement on the Philippine Dealing and Exchange Corp. on the issue date. Arthaland has tapped BDO Capital &Investment Corp. as the sole issue manager, while BDO Capital and PNB Capitaland Investment Corp. are appointed as the joint lead underwriters and book-runners for the offer.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic