Arthaland Corp., the property development company led by the Po family, said it has secured the permit to sell its P3-billion Asean Green Bonds from the Securities and Exchange Commission (SEC).
The company’s Asean Green Bonds, some P2 billion of which is its primary offering and P1 billion is for oversubscription option, carry a coupon rate of 6.3517 percent per annum payable quarterly in arrears and will mature in five years from the February 6, 2020, issue date.
However, Arthaland can exercise its early redemption option on the third or fourth year from issue, in which case the bonds will be redeemed at 101 percent and at 100.5 percent of face value, respectively, the company said.
The minimum denomination is P50,000 with increments of P10,000 thereafter.
Offer period is during January 22 to 28.
“We are very pleased with the overwhelming positive response toward our green projects. With this offer, Arthaland will be the first, non-bank corporate issuer of SEC-registered Asean Green Bonds in the Philippines. This demonstrates our unwavering commitment to sustainability,” said Arthaland Vice Chairman and President Jaime C. Gonzalez.
The said amount is part of the P6-billion green bonds shelf registration that was approved by the SEC late last year.
BDO Capital and Investment Corp. and ING Bank are the joint lead underwriters and joint bookrunners while PNB Capital and Investment Corp. is the co-lead manager for the offer.
The company said it will use the proceeds in accordance with its Green Finance Framework, under which the company can issue debt financing instruments to finance or refinance new or existing eligible green projects.
It identified as eligible green projects Arthaland Century Pacific Tower and Savya Financial Center, whose value on the company’s balance sheet supports the issuance of Asean Green Bonds.
Arthaland is aiming to grow its business five times over the next five years to a total development portfolio of 500,000-square-meters worth P60 billion by 2024.
Gonzalez earlier said firm continues to be optimistic about the prospects of its business given the growth of the Philippine economy, with the property market now putting premium on sustainable developments.
“We wouldn’t be surprised if we exceed the 500,000-square-meter target as we are getting a lot of offers for joint ventures,” he said.
The firm hit P10 billion in reservation sales last year for its three developments currently undergoing construction in Taguig, Cebu and Laguna.
This year, the company will expand its green development portfolio with the launch of its flagship high-end green residential condominium in Cebu City, a green luxury residential condominium in Makati CBD, and low and mid-rise upscale apartments in Sevina Park.