now loading...
Wealth Asia Connect Middle East Treasury & Capital Markets Europe ESG Forum TechTalk
Green Finance / Treasury & Capital Markets
AC Energy prices fixed-for-life green bonds
Proceeds from five-times oversubscribed deal to finance or refinance green energy projects
The Asset 3 Sep 2021

The Philippine-listed energy platform AC Energy Corporation returned to the US dollar bond market as it priced on September 2 another fixed-for-life green bonds amounting to US$400 million.

The bonds, issued through ACEN Finance, were priced at par and carried a coupon of 4%. This was 45bp tighter than the initial price guidance, with no step-up and no reset. The transaction was more than five times oversubscribed with an order book exceeding US$2 billion.

Commenting on the offering, AC Energy president and CEO Eric Francia says the green bonds accelerate the company’s aggressive renewables expansion and enable the green-led recovery.

The Securities and Exchange Commission of the Philippines confirmed the bonds comply with the requirements under the Asean Green Bonds Circular and qualify as an Asean green bond issuance.

The bonds are drawn under ACEN Finance’s US$1.5 billion medium-term note programme, and the net proceeds will be used to finance or refinance new or existing eligible green projects in accordance with AC Energy’s green bond framework.

Last month, AC Energy, through its wholly-owned subsidiary AC Renewables International, announced a joint venture agreement with NEFIN Holdings, a leading solar photovoltaic developer and investor in carbon neutrality solutions. The two companies will establish a 50-50 joint venture holding company that will develop, construct and operate rooftop solar projects across Asia.

Earlier in May, the company announced the start of construction of a 160-megawatt (MW) wind farm located in the northern province of Ilocos Norte, which will be the largest in the country. The 11.4-billion-peso (US$230 million) wind farm, which is targeted for completion in the fourth quarter of 2022, is AC Energy’s latest project with long-time partner UPC Renewables.

BPI Capital Corporation acted as the sole global coordinator for the transaction as well as a joint bookrunner and lead manager, along with Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan Stanley and UBS. The domestic lead managers were China Bank Capital Corporation, First Metro Investment Corporation, PNB Capital and Investment Corporation and RCBC Capital Corporation.

AC Energy previously printed a fixed-for-life green bond in November 2020 amounting to US$300 million. The proceeds were used to fund the company’s tender offer for its US$400 million 5.65% senior perpetual notes, callable in December 2022. Part of the proceeds were also earmarked to finance AC Energy’s green energy projects.

AC Energy has one of the highest renewables share capacities in Southeast Asia after pivoting to a lower-carbon portfolio by developing more renewable energy projects and a planned divestment of coal assets. Its aspiration is to be the largest listed renewables platform in Southeast Asia, and the company is on track to achieve its goal of reaching 5,000MW of renewables capacity by 2025.

Conversation
Bhaskar Laxminarayan
Bhaskar Laxminarayan
chief investment officer, Asia and head investment management, Asia
Julius Baer
- JOINED THE EVENT -
Asset Servicing Leadership Series
How digital assets are transforming Asia's investment landscape
View Highlights
Conversation
Sagarika Chandra
Sagarika Chandra
director, Asia-Pacific sovereign ratings
Fitch Ratings
- JOINED THE EVENT -
Webinar
Fitch on Vietnam: Navigating a Post-Pandemic World
Session I: Macroeconomic overview and infrastructure
View Highlights