Arthaland starts offering P3-B ASEAN green bonds

ARTHALAND Corp. has started its offer for up to P3-billion ASEAN green bonds after obtaining its permit to sell from the Securities and Exchange Commission (SEC).

In a disclosure to the stock exchange Wednesday, the niche property developer said it had started its offer period yesterday, which will last until Jan. 28. The offer covers P2-billion ASEAN green bonds with an oversubscription option of up to P1 billion.

Proceeds from the issuance will be used for Arthaland’s pipeline of green projects, as required by the SEC to be eligible for ASEAN green bonds.

“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 said in a statement.

The coupon rate for the issuance is 6.3517% per annum payable quarterly in arrears. It will mature five years after its issue date on Feb. 6, except if Arthaland chooses to do an early redemption on the third or fourth year from issue date, in which case the bonds may be redeemed at 101% and 100.5% of face value, respectively.

Minimum denomination for the offer is P50,000 with increments of P10,000 thereafter.

Arthaland tapped BDO Capital and Investment Corp. and ING Bank as the joint lead underwriters and joint bookrunners for the issuance, while it selected PNB Capital and Investment Corp. as the co-lead manager for the offer.

The company has a shelf registration for a total of P6-billion ASEAN green bonds. The remaining P3 billion apart from the P3-billion bonds it is selling now may be issued within the next three years.

Local debt watcher Philippine Rating Services Corp. (PhilRatings) has given Arthaland a credit rating of “PRS Aa minus” for the P6-billion green bonds, which means the company has a “very strong” capacity to meet its financial obligation.

Arthaland is currently working to expand its development portfolio by five times until 2024, which will increase its gross floor area to above 500,000 square meters.

In the first nine months of 2019, the company’s attributable net income reached P647.36 million from P75.64 million in the same period in 2018.

Following the approval of its green bonds, shares in Arthaland at the stock exchange inched up two centavos or 2.50% to close at P0.82 each on Wednesday. — Denise A. Valdez


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Tags: ARTHALAND Corp Developer