Upscale developer Arthaland Corporation is planning to raise another P3 billion from a planned issuance to the public of Philippine Peso-denominated ASEAN Green Bonds.
In a disclosure to the Philippine Stock Exchange, the firm said the bonds shall come from the remaining unissued portion of the Corporation’s shelf registration of up to P6.0 billion approved by the Securities and Exchange Commission in January 2020.
Arthaland has maintained the Issue Credit Rating of PRS Aa, with a Stable Outlook for its first tranche of P3.0 billion Fixed-rate ASEAN Green Bonds.
ASEAN Green Bonds adhere to the ASEAN Green Bonds Standards which require proceeds to be used exclusively to fund eligible green projects, including certified green buildings.
A regular review on the use of proceeds and quantifiable updates on the funded project’s environmental benefits are also required.
Philippine Rating Services Corporation (PhilRatings) said 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.
On the other hand, a Stable Outlook is assigned when a rating is likely to be maintained or to remain unchanged in the next 12 months.
PhilRatings said its rating and outlook for the issue were assigned given Arthaland’s clear strategic direction, resulting in global recognition as a real estate developer of multi-certified (locally and internationally) green projects in the Philippines, leading to continued market interest in its products.
It also noted that the firm has been able to sustainably grow and compete in its chosen niche, despite the presence of larger competitors with a more established presence and longer operating history.
Also factored in the rating is Arthaland’s relatively manageable liquidity position in relation to debt servicing and its improved profitability supported by less stringent economic restrictions.
PhilRatings also considered the economic recession and weaker market conditions that have tempered the industry’s growth momentum, albeit the sector is showing signs of recovery and points towards a more positive outlook.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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