AC Energy Corp. said its wholly owned subsidiary ACEN Finance Ltd. has completed the issuance of $400-million worth of senior guaranteed green bonds, making up portion of its parent firm’s fresh capital which has hit nearly $1 billion in 2021 alone.
In a disclosure on Thursday, AC Energy said its undated green bonds were issued at an aggregate amount of $400 million, with a fixed coupon of 4% for life, with no step-up and no reset, priced at par.
“The success of this fixed-for-life offering highlights the international investor community’s continuing confidence in ACEN and in our strategic objectives,” AC Energy President and Chief Executive Officer Eric T. Francia said, referring to the company’s stock ticker symbol.
“We believe that this Green Bond issuance will further empower us to scale up RE investments and achieve our vision of becoming the largest listed renewable energy platform in Southeast Asia,” he added.
The bonds were issued by ACEN Finance under its $1.5-billion medium-term note program and are listed on the Singapore Exchange. The unit’s parent firm guaranteed the securities.
The corporate regulator earlier confirmed that the bonds complied with the ASEAN Green Bonds Circular, rendering their net proceeds eligible for the funding or refinancing of new and existing green projects.
AC Energy said that earnings from this issuance may fund solar power facilities, offshore wind projects and geothermal undertakings with direct emissions of less than 100 grams of carbon dioxide per kilowatt-hour.
“Including the Company’s P5.4-billion ($111.2 million) stock rights offering, P10.3-billion ($212.2 million) follow-on offering, and P11.9-billion ($244.2 million) primary share investment by GIC affiliate Arran Investment Pte. Ltd. (Arran), ACEN has now raised a total of close to $1 billion in fresh capital in 2021 which it can use to fund its goal of (achieving) 5,000 megawatts (MW) in attributable renewable energy (RE) capacity by 2025,” it said.
Late last month, the firm announced that its management gave the green light for the firm to embark on a joint venture with an affiliate of German solar firm ib vogt GmbH to develop local solar projects with an initial 300 megawatts of direct current.
It added its executive committee also cleared the respective capital expenditure (capex) amounts of the AC Energy’s planned solar project of about 288 MW in Buguey and Lal-lo, Cagayan; and its proposed 275-MW expansion of its Gigasol Palauig solar project in Zambales.
AC Energy, the listed energy platform of the Ayala group, has about 2,600 MW of attributable capacity in Philippines, Vietnam, Indonesia, India and Australia. The firm said that its renewable share of capacity stood at 80%, among the highest in the region.
AC Energy shares at the local bourse improved by 0.4% or four centavos to finish at P10.04 apiece on Thursday. — Angelica Y. Yang