AC Energy issues $300M in green bonds


Ayala-led AC Energy issued US dollar-denominated senior perpetual fixed-for-life (non-deferrable) green bonds worth $300 million (Php14.3 billion) last November 27.

The company said it would use the bonds’ net proceeds to fund a tender offer and $400-million senior perpetual fixed-for-life notes callable in December 2022, as well as the balance to finance eligible green energy projects.

The bonds, which carry a fixed coupon rate of 5.1%, represent the first Philippine fixed-for-life perpetual bond offering since November 2019, and the first public green bond out of the Philippines in 2020.

AC Energy Finance International Ltd. issued the bonds under a $2-billion medium term note program. These bonds listed on the Singapore Exchange Securities Trading Ltd., were certified as ASEAN Green Bonds by the Philippine Securities and Exchange Commission earlier on November 18.

The Ayalas’ power arm said the Green Bond Framework sets out clear guidelines for the use of proceeds for renewable energy projects, with comprehensive monitoring and reporting commitments.

AC Energy President and CEO Eric Francia has expressed delight in seeing high investor confidence in the company following the launch of its green bond in 2019. He believes that this development will power the company in its pursuit to scale up renewable investments in the Asia-Pacific region.