Arthaland eyes ‘green’ bond offering

Boutique property developer Arthaland Corp. plans to raise as much as P6 billion from a maiden offering of “green” bonds in one or more tranches over a three-year period.

The company’s board approved the issuance of such fixed-rate peso-denominated securities under the framework for Association of Southeast Asian Nations (Asean) green bonds, or those that raised funds for projects with clear environmental benefits.

As such, the company will seek shelf registration with the Securities and Exchange Commission for the offering.

Green bonds are similar to traditional bonds in terms of deal structure, but they have different requirements for reporting, auditing and proceeds allocations.

Asean green bonds refer to bonds and “sukuk” which comply with a framework whereby the proceeds will be exclusively used to fund eligible green projects. These 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.

All designated green projects must provide clear environmental benefits, which will be assessed and, where feasible, quantified by the issuer, based on the guidelines. Fossil fuel power generation projects, for instance, are excluded from the Asean GBS.

Meanwhile, Arthaland’s board also approved, confirmed and ratified the execution of definitive agreements with Help Holdings Inc. (HHI) and Savya Land Development Corp. which outline their respective rights and obligations in the implementation of the Arca South Project. —DORIS DUMLAO-ABADILLA