Po family’s Arthaland to issue P3B ASEAN green bonds this month

Upscale property developer Arthaland Corp. of the Po family will issue the second tranche of its ASEAN Green Bonds under shelf registration this month, hoping to raise up to P3 billion.

Based on its final prospectus, the green bond issuance will start on December 22.

The bonds consist of an aggregate principal amount of P2.4 billion, with an oversubscription option of P600 million.

A portion of the ASEAN Green Bonds will have a term of five years from the issue date with a fixed interest rate of eight percent per annum, while the remaining portion will have a term of seven years from the Issue date with a fixed interest rate 8.7557 percent annually.

Arthaland will use net proceeds of the offer to fund residential projects in the Makati central business district.

If the oversubscription option is exercised, proceeds will likewise be used to fully fund the required investment for Project Midtown and to partially fund scheduled repayments of the loan that financed the construction and development of Arthaland Century Pacific Tower, all of which qualify as eligible green projects under ALCO’s Green Finance Framework.

The P3 billion ASEAN Green Bonds will come from the remaining unissued portion of its shelf registration of up to P6 billion. The first tranche was issued by the company in 2020.