Arthaland returns to debt market via P3-B green bond

The Po family-led Arthaland Corp. is returning to the debt market with a P3-billion bond sale under the Asean Green Bond framework.

Arthaland plans to offer five-year and seven-year bonds although a timetable has yet to be finalized, the preliminary deal prospectus dated Oct. 14 showed. The money is being raised to partially fund new real estate projects and repay obligations.

The offer was part of its long-term registration of P6 billion in debt securities under the Asean Green Bond Program. It previously tapped the program for a P3-billion bond sale in 2020.

Arthaland hired BDO Capital and Investment Corp. as sole issue manager while BDO and PNB Capital would act as joint lead underwriters and bookrunners.

The offer follows the Asean green bond standards, meaning proceeds should be used to finance sustainable projects, including certified green projects.

Investors can buy a minimum of P50,000 at face value and in P10,000 increments thereafter, the prospectus showed.

Meanwhile, Philippine Rating Service Corp. (PhilRatings) assigned the bonds a credit rating of PRS Aa, which indicates very low credit risk.

PhilRatings considered the company’s project portfolio, niche market, balance sheet, earnings and the “gradual pick up of the property sector.”

“The reopening and recovery of the economy is expected to positively impact the real estate sector. The demand pick-up of residential properties was already seen in early 2022,” PhilRatings said.

—Miguel R. Camus