AREIT, Inc. raised P3 billion from its maiden bond issuance, which was also the initial tranche of its P15-billion debt securities program.

The P3-billion 3.0445% fixed-rate bonds due in 2023 were listed at the Philippine Dealing & Exchange Corp. (PDEx) on Tuesday.

During its virtual listing ceremony, PDEx President and Chief Executive Officer Antonino A. Nakpil noted that AREIT was the first real estate investment trust (REIT) firm to hold a bond issuance for public investors.

The bonds were said to be 5.6 times oversubscribed and reached P16.9 billion. AREIT Director, President, and Chief Executive Officer Carol T. Mills said demand came “mostly from retail and institutional investors.”

“[Retail investors] accounted for 58% or roughly P1.75 billion of the total issuance,” said Commissioner Ephyro Luis B. Amatong of the Securities and Exchange Commission.

Net proceeds from the bond issuance will be used to refinance debt and will also partially fund AREIT’s acquisition of a Pasig City mixed-use commercial development, The 30th.

AREIT’s maiden bond offering marked the 23rd listing at the PDEx this year, bringing total new listings to P213.45 billion. Meanwhile, the total level of tradable corporate debt instruments stood at P1.3 trillion, which were issued by 54 firms via 191 securities. — Keren Concepcion G. Valmonte