Arthaland plans P3 billion green bond issue

MANILA, Philippines — Arthaland Corp.’s planned P3 billion fixed-rate ASEAN green bond offering secured a PRS Aa minus rating from the Philippine Rating Services Corp., a notch below the highest credit grade on the credit agency’s scale.

The issue, which forms part of the company’s three-year shelf registration of up to P6 billion, has also been assigned an issue credit rating of PRS Aa minus.

The bonds mark the first green issuance provided with a credit rating by PhilRatings.

Proceeds from the offering will be  used mainly to fund additional equity contribution required for the retention of retail and office units in its existing environmentally sustainable projects and the acquisition of a property for a long-term undertaking.

All of the company’s completed and on-going projects are at least dual certified with the Philippine Green Building Council’s (PHILGBC) Building for Ecologically Responsive Design Excellence (BERDE), and with the US Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED).

One of its office projects, Arthaland Century Pacific Tower in Bonifacio Global City, stands as the only triple-certified green project in the Philippines and the first in the world to achieve the EDGE Zero Carbon Certification under the International Finance Corp. (IFC).

Obligations rated PRS Aa are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitment on the obligation is very strong. A plus or minus sign may further qualify a credit rating.

A stable outlook, on the other hand,  is assigned when a rating is likely to be maintained or to remain unchanged in the next 12 months.

Arthaland began operations in 2009 and is the only real estate developer locally to have its entire project portfolio certified green.

 With about 10 years of operations in the industry, the company has managed to create a distinct brand name within a competitive market.

“Over the long-term, it is expected that buyers and/or tenants may prefer “green” projects and ALCO will be well-placed to take advantage of this, having a “first mover” advantage domestically, in relation to this aspect,” PhilRatings said.

Arthaland likewise has sufficient land bank available for future projects which are strategically located in areas beyond Metro Manila such as Cebu, Laguna and Batangas.