Arthaland’s ‘green bonds’ offering OKd

The Securities and Exchange Commission (SEC) has approved a plan of boutique property developer Arthaland Corp. to raise as much as P6 billion through an offering of “green bonds” over a three-year period.

The first tranche of the offering is expected to amount to as much as P3 billion, consisting of a base offering of P2 billion and an option to upsize by P1 billion.

Arthaland’s green bonds are aligned with the Association of Southeast Asian Nations (Asean) Capital Markets Forum Green Bond Standards 2018.

Asean “green” bonds refer to bonds and sukuk, which comply with a framework that provides that the proceeds will be exclusively applied 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.

In a statement on Monday, the SEC said that the approval of Arthaland’s registration statement was subject to the company’s full compliance with the conditions stated in the pre-effective letter dated Dec.17.

Arthaland’s green bonds will be issued in scripless form, in denominations of P50,000 and in multiples of P10,000 thereafter. They will be traded in denominations of P10,000 at the secondary market.

Arthaland may redeem, in whole, the outstanding green bonds before the maturity date. The company may redeem the bonds at 101 percent of the face value on the third year or 100.5 percent on the fourth year.

BDO Capital and Investment Corp. and ING Bank N.V., Manila branch, will serve as joint lead underwriters and joint bookrunners while PNB Capital and Investment Corp. will act as colead manager.

Arthaland has identified Arthaland Century Pacific Tower (ACPT) and Savya Financial Center among the eligible green projects. Out of potential proceeds from the first tranche, Arthaland earmarked P1.5 billion as additional investment in Savya or other eligible green projects to retain office and retail units, and P305 million for the scheduled repayments of a loan used for the construction and development of ACPT. The company set aside the remaining P1.14 billion for the acquisition of properties.

In the meantime, the company appointed Vigeo Eiris as green finance framework second party opinion provider for the offer. Vigeo Eiris is an independent international provider of environmental, social and governance research and services for investors as well as public and private organizations. INQ