AgriNurture to issue P4.2 B green bonds

AgriNurture Inc. (ANI), the listed agro-commercial company of businessman Antonio Tiu, is looking to issue green bonds of up to 75 million euros (P4.2 billion) with maturity of up to seven years.

Proceeds would be used to fund the expansion of the company’s agricultural projects.

“ANI is issuing green bonds overseas and increasing its capital to P5 billion from P2 billion,” said Tiu, chairman of ANI.

In industry parlance, a green bond is a type of fixedincome instrument that is specifically earmarked to raise money for agriculture-related, environmental projects or climate-related projects.

These bonds are typically asset-linked and backed by the issuing entity’s balance sheet, so they usually carry the same credit rating as their issuers’ other debt obligations.

ANI’s board of directors approved the issuance in its meeting last Oct. 10.

The board approval also provides authority to issue commercial papers.

Tiu said ANI’s expansion projects are on track, noting that agriculture is a pandemic resilient industry.

Last week, Tiu also announced plans to create a bigger conglomerate aimed at addressing Filipinos’ need for agricultural products, financial technology or fintech, clean energy, sustainable transit-oriented real estate development, green transportation, and medical technology among others.

The overall goal is to maximize opportunities for business growth, enhance shareholder value and cater to the evolving needs of Filipino consumers especially during this time of the COVID- 19 pandemic.

At present, Greenergy owns 100 percent of WinSun Green

Ventures, 62.3 percent of Sunchamp Real Estate Development Corp., 51 percent of the Yakuru Group and 18 percent of ANI.

Tiu will reorganize and transfer ANI shares to Greenergy as part of the company’s conversion into a bigger holding firm and infuse the fintech assets of ANI such as digital banking and the agri-token ecosystem.