ARTHALAND Corp. has formally filed its application with the Securities and Exchange Commission (SEC) to issue P6-billion fixed-rate bonds, of which P3 billion will be Association of Southeast Asian Nations (ASEAN) green bonds.

In its prospectus submitted to the SEC and uploaded on its website, the niche property developer said its bond program will have multiple tranches, where the maturity and specific terms for each will be determined in its corresponding offer supplements.

For the first tranche of the bonds, Arthaland said the offer will be worth up to P2 billion and have an oversubscription option of up to P1 billion. It will follow the company’s green finance framework, where the proceeds of the issuance will fund the construction of green projects.

The registration of the green bonds with the SEC follows Arthaland’s announcement last month of its intent to tap the market for ASEAN green bonds.

Green bonds are a type of debt financing meant to raise funds that will support projects with environmental impact. Arthaland said it will subscribe to the standards for green bonds set by the ASEAN Capital Markets Forum, International Capital Market Association and Loan Market Association.

Proceeds from the debt issuance will be used for projects in Arthaland’s “eligible green portfolio,” comprised of those that adhere to three main environmental objectives: climate change mitigation, promotion of green buildings and environmentally sustainable management of land.

Arthaland prides itself for being the “foremost green developer” in the country, with international recognition for its green buildings. Among these are its Arthaland Century Pacific Tower and Arya Residences, both located in Bonifacio Global City.

The company is also the developer of Savya Financial Center in Taguig City, which has been registered for dual certification in the US Green Building Council’s Leadership in Energy and Environmental Design and the Philippine Green Building Council’s Building for Ecologically Responsive Design Excellence.

Arthaland reported an attributable net income of P647.36 million in the nine months to September, up from P75.64 million a year ago, driven by a 151% surge in revenues to P1.49 billion.

Shares of the company at the stock exchange slipped two centavos points or 2.33% to 84 centavos apiece on Wednesday. — Denise A. Valdez