Arthaland eyes P3B green bond debut

Boutique property developer Arthaland Corp. has set up a green finance framework – the first by a local real estate company – in line with its plan to debut into the green bond market.

Arthaland has filed an application with the Securities and Exchange Commission to offer as much as P6 billion worth of bonds to the public though the three-year shelf registration window, of which P3 billion will be in the form of Association of Southeast Asian Nation (ASEAN) green bonds, the company disclosed to the Philippine Stock Exchange on Wednesday.

The company’s green finance framework provides the basis for the issuances of green bonds and loans, which can be denominated in Philippine pesos or in any other currency. Proceeds from any green financing under the framework will be used to finance or refinance a portfolio of eligible projects relating to green buildings.

Arthaland said its framework was aligned with the ASEAN Capital Markets Forum Green Bond Standards 2018, the International Capital Market Association Green Bond Principles 2018 as well as Loan Market Association, Asia-Pacific Loan Market Association and Loan Syndications and Trading Association Green Loan Principles 2018.

“Setting up the green finance framework further reinforces Arthaland’s firm commitment to sustainable developments. This commitment is prevalent in its entire organization especially in the end-to-end development process of its projects,” the company said in its disclosure.

Vigeo Eiris, an independent international provider of environmental, social and governance (ESG) research and services for investors as well as public and private organizations, was tapped to review the green finance framework of Arthaland. It expressed a reasonable assurance on Arthaland’s commitments and on the contribution of the contemplated financial instruments to sustainability.

“Arthaland demonstrates clear commitments in contributing to sustainability by contemplating the Financial Instrument issuance to finance or refinance projects related to green buildings certified according to relevant greening building certifications,” based on the second party opinion issued by Vigeo Eiris.

Dutch financial giant ING was mandated by Arthaland as the green structuring advisor for its green finance framework.