AC Energy (ACEN), the energy arm of Philippine conglomerate Ayala Group, will issue some 10 billion Philippine pesos (US$177.18 million) of fixed-rate green bonds to fund its renewable energy projects.
The peso-denominated fixed-rate bonds will qualify as Asean (Association of Southeast Asian Nations) green bonds, have a five-year tenor and be listed on the Philippine Dealing and Exchange Corp, according to the company’s Philippine Stock Exchange (PSE) disclosure.
Under Asean Green Bond Standards, the proceeds of bond issuances must be used exclusively for the funding of eligible green projects.
“Since our debt levels remain very manageable, we are taking this opportunity to issue peso green bonds to fund our renewable energy expansion in the country,” says ACEN chief financial officer and treasurer Maria Corazon Dizon. The offering will be ACEN’s debut Philippine peso bond issue.
With the bond issuance, the company, Dizon adds, will be able to contribute to the development of the Philippine debt capital market while providing local investors with a chance to invest in sustainable financing instruments.
The sale of the green bonds will fund various company projects, including the San Marcelino solar farm in Zambales, which will have 283 megawatts of direct current (MWdc), the 42MWdc expansion of the current 72MWdc Arayat-Mexico solar farm in Pampanga and the construction of the 133MWdc first phase of the Cagayan solar farm in Lal-lo, Cagayan.
The 10-billion-peso bonds are the first tranche of the company’s planned 30-billion-peso issuance of debt securities, all of which will fund renewable energy projects.
In an earlier PSE disclosure, the company notes that it intends to file a three-year shelf registration for its debt securities programme with the Philippine Securities and Exchange Commission.
ACEN currently has over 3,400MW of attributable renewable energy capacity in the Philippines and neighboring Southeast Asian countries. It is working to build 5,000MW of renewables by 2025 and reach its goal of becoming the largest listed renewables platform in Southeast Asia.