Boutique property developer Arthaland Corp. plans to issue P3 billion worth of ASEAN green bonds as an initial tranche from its P6-billion bond shelf registration filed with the Securities and Exchange Commission.
Arthaland said in an offer supplement filed with the SEC it would issue P3 billion in fixed retail bonds due 2024. It plans to use proceeds from the offering to fund green projects.
Arthaland has allotted P1.5 billion from the bond offering to partially finance the construction of Savya Financial Center and other eligible green projects to achieve approximately 10,500 square meters of net leasable area.
Arthaland is also allotting P1.14 billion to fund planned land acquisitions in Metro Manila.
“Arthaland is currently evaluating and negotiating for the acquisition of large properties with total green area of 18 hectares in areas of Metro Manila which have very high growth potential,” the property firm said.
“Once acquired, Arthaland plans to develop these into sustainable mater planned communities which will have commercial, residential, retail and institutional components that will qualify as eligible green projects and will have divided in several phases over a 10 to 15-year period,” it added.
Arthaland plans to acquire and develop the properties with joint venture partners.
The company hired BDO Capital & Investments Corp. and ING as joint lead underwriters and joint lead book runners of the offering.
The SEC last year adopted the Asean Green Bonds Standards which provide for the rules and procedures on the issuance of ASEAN Green Bonds in the Philippines.
ASEAN Green Bonds refers to bonds and sukuk that comply with the ASEAN GBS, where the proceeds will be exclusively applied to finance or refinance, in part or in full, new or eligible Green Projects.
Eligible green projects include renewable energy, energy efficiency, pollution prevention and control, environmentally sustainable management of living natural resources and land use, clean transportation, climate change adaptation and green buildings.
The SEC said the guidelines aimed to improve awareness and appetite for green financing in the local market.
The SEC noted a significant lack of interest from local companies to issue green bonds.