AC Energy raising Php30B for RE projects this year


AC Energy (ACEN) aims to put up Php30 billion in funding this year to help reach its 5,000-megawtt (MW) renewable energy (RE) target by 2025, as well as to achieve its vision of becoming Southeast Asia’s largest listed RE firm.

ACEN President and CEO Eric Francia said that the fundraising is part of the company’s five-step restructuring plan to help it have a strong position towards attaining its goals.

The restructuring includes the recently-concluded stock rights offering that brought in over Php5.37 billion. Meanwhile, upcoming steps include the placement of four billion shares in Singaporean investment fund GIC Private Ltd. worth Php11.9 billion and a follow-on offering (FOO) hopefully by mid-year, from which the balance of the Php30 billion target would be sourced.

AC Energy recently signed an investment agreement with GIC for a 17.5% ownership in the Ayalas’ power arm worth Php20 billion.

Francia said that the proceeds would be allotted for domestic RE projects in 2021, raising ACEN’s local portfolio of around 450MW to about 1,000MW. Late last year, Francia said that the company aims to achieve half of its overall RE portfolio target this year.

Other restructuring steps planned include the infusion of AC Energy’s international assets, which are currently undergoing another round of valuation given the capacity expansion the company has achieved in recent months. Francia particularly said that the company has announced a share swap of worth Php16.7 billion.

Francia also emphasized that the final decision on the foreign assets’ infusion will conclude within the first quarter. This is so that prospective investors will have a firm idea of the infusion’s terms once the FOO is conducted.