ARTHALAND Corp. is targeting the issuance of its P3-billion Association of Southeast Asian Nations (ASEAN) green bonds before the end of January.
Leonardo T. Po, executive vice-president and treasurer of the listed niche property developer, told reporters last week the company is hoping to receive the permit to sell the bonds from the Securities and Exchange Commission (SEC) soon.
“P6 billion is the total shelf registration. But we’re only activating P2 billion with an option to increase to P3 billion… We’re hoping to get it done by the end of this month,” he said.
Arthaland previously disclosed it plans to use proceeds from the bond issuance for its pipeline of green projects — a requirement by the SEC for companies to offer ASEAN green bonds.
The company has internationally and locally recognized green buildings in its portfolio, such as the Arthaland Century Pacific Tower and Arya Residences in Bonifacio Global City, Taguig.
It is also building the Cebu Exchange, Savya Financial Center in Taguig City and Sevina Park in Laguna, and has plans to launch projects in its properties in Makati City and Cebu Business Park.
Mr. Po said while green bonds are not yet very popular in the Philippines, noting Arthaland is the first non-financial corporation to do such issuance in the country, there is high interest from foreign investors for the climate-focused financing instrument.
“Investing in sustainable financial instruments is more common in developed markets. But it’s only now that it’s coming here… If you look to what’s happening around the world, we see that there is traction for this type of investment,” he said.
Once Arthaland completes the first tranche of its P6-billion shelf registration, Mr. Po said the remaining P3 billion will be offered “as and when we need it.” The bonds will have a three-year validity from the SEC’s approval of the registration.
Arthaland Senior Vice-President for Strategic Funding and Investments Sheryll P. Verano said the cash the company expects to raise from the green bonds is expected to be “good at least for up to 2024.” She noted Arthaland may consider bank financing for other fundraising activities.
Arthaland has a five-year plan until 2024 to expand its development portfolio by five times, increasing its gross floor area to a little over 500,000 square meters from 100,000 square meters.
With its list of projects over the next four years, the company is set to complete P60-billion worth of developments to load its portfolio.
Earnings of Arthaland soared to P647.36 million in the first nine months of 2019 from P75.64 million in the same period in 2018, driven by a 151% growth in its revenues to P1.49 billion.
Its shares at the stock exchange dipped 2 centavos or 2.38% to P0.82 each on Friday.