By James A. Loyola
The Securities and Exchange Commission (SEC) has approved Arthaland Corporation’s registration statement covering up to ₱6 billion worth of ASEAN Green Bonds under Shelf Registration.
The first tranche of ₱2 billion with over-subscription option of up to ₱1 billion, if fully exercised, shall be offered within three years from the effective date of the registration statement.
Arthaland appointed Vigeo Eiris as green finance framework second party opinion provider for the offer.
The firm will use the proceeds in accordance with its Green Finance Framework, under which the company can issue debt financing instruments to finance or refinance new and/or existing eligible green projects.
Arthaland has identified as eligible green projects Arthaland Century Pacific Tower (ACPT) and Savya Financial Center, whose value on the company’s balance sheet supports the issuance of ASEAN Green Bonds.
Of the net proceeds assuming the full exercise of the oversubscription option, Arthaland earmarked ₱1.5 billion for additional investment in Savya Financial Center or other eligible green projects to retain office and retail units, and ₱305.35 million for the scheduled repayments of a loan for the construction and development of ACPT.
The company set aside the remaining ₱1.14 billion of the net proceeds of the primary offer for the acquisition of properties for the Manila Long-Term Project.
Meanwhile, Arthaland will allocate up to P681.63 million of the proceeds of the exercise of the oversubscription option for additional investment in Savya Financial Center or other eligible green projects to retain up to 4,800 square meters of net floor area in said projects.
Philippine Rating Services Corporation assigned the green bonds a “PRS Aa minus” rating with a “stable” outlook.
Arthaland may redeem, in whole, the outstanding green bonds before the maturity date. The company may redeem the bonds at 101.00 percent of the face value on the third year or 100.50 percent on the fourth year.
BDO Capital and Investment Corporation and ING Bank N.V., Manila Branch will serve as joint lead underwriters and joint bookrunners while PNB Capital and Investment Corporation will act as co-lead manager.