The Securities and Exchange Commission approved the P6-billion ASEAN green bonds shelf registration of boutique property developer Arthaland Corp.
Arthaland said in a filing Monday with the SEC it planned to issue the first tranche of green bonds worth up to P2 billion with an oversubscription option of P1 billion.
The green bonds will be issued in scripless form, in denominations of P50,000 and in multiples of P10,000. They will be traded in denominations of P10,000 in the secondary market.
BDO Capital and Investment Corp. and ING Bank N.V., Manila Branch will serve as joint lead underwriters and joint book-runners while PNB Capital and Investment Corp. will act as co-lead manager.
Philippine Rating Services Corp. 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 get back the bonds at 101.00 percent of face value in the third year or 100.50 percent in the fourth year.
Arthaland will use the proceeds to finance the construction of green projects in accordance with Green Finance Framework.
The property company identified two eligible green projects, namely Arthaland Century Pacific Tower and Savya Financial Center.
The SEC has been encouraging companies to take advantage of green financing in order to pursue projects and investments with positive impact on the environment.
The SEC in August 2018 issued the “Guidelines on the Issuance of Green Bonds Under the ASEAN Green Bond Standards” to improve awareness and appetite for green financing in the local market amid a surge in global capital looking for sustainable investments.
ASEAN Green Bonds are financing instruments whose proceeds will be exclusively used to fund or refinance new or existing projects that must provide clear environmental benefits.
