Arthaland Corp. plans to sell up to P3 billion in ASEAN Green Bonds next month with an interest rate of 6.3517 percent a year.
Arthaland will offer P2 billion of the bonds with an oversubscription option of up to P1 billion. The company plans to use proceeds from the bonds to fund eligible projects under its green finance framework. The offering period starts from January 22 to 28.
The bonds will be issued on February 6 and be listed on Philippine Dealing & Exchange Corp.
“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 Gonzalez.
The company tapped BDO Capital & Investments Corp. and ING Bank as joint lead underwriters and book runners of the offering and PNB Capital and Investments Corp. a co-lead manager.
The ASEAN Green Bonds received a credit rating of PRS Aa minus with a stable outlook from Philippine Rating Services Corp.
Arthaland is leading the green building charge after posting P10 billion in cumulative reservation sales in 2019 from three developments currently under construction.
These are Cebu Exchange, the single largest green office building in the Philippines with approximately 11 hectares of gross floor area; Savya Financial Center, a premium green twin tower office development with a fully integrated retail component in Arca South; and Sevina Park, a low-density, mixed-use community in Biñan, Laguna, which will be the first in the Philippines to aim for LEED Neighborhood Development and LEED Home Certification.
Arthaland plans to expand its green development portfolio in 2020 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.
The company is also on track of its target 500,000 square meters of development portfolio over the next five years with the recent acquisitions of two properties in Makati and one in Cebu.