Investors were eager to avail of AC Energy’s ASEAN Green Bond offering at the Singapore Exchange (SGX) that it was oversubscribed, with orders exceeding $2 billion (over Php100 billion), or more than five times the $400 million (around Php20 billion) the firm had planned to raise.
Launched on Tuesday, the fixed coupon rate for the US dollar-denominated senior guaranteed undated securities was set at 4.0% for life with no step-up and no reset, priced at par. The rate was 45 basis points tighter than the initial price guidance. As a result, the offer was able to attract a wide range of high-quality investors.
AC Energy unit ACEN Finance Limited will issue the green bonds, to be guaranteed by ACEN, under its $1.5-billion medium-term note program. The bonds will be listed on the SGX Securities Trading platform (SGX-ST).
The Philippine Securities and Exchange Commission confirmed on August 25 the bonds’ compliance with the ASEAN Green Bonds Circular requirements and therefore qualify as ASEAN Green Bonds.
Upon issuance, the net proceeds from the green bonds will be used to finance or refinance, in whole or in part, new or existing Eligible Green Projects. This is in accordance with AC Energy’s Green Bond Framework, which sets out guidelines for the use of proceeds for renewable energy (RE) projects, with comprehensive monitoring and reporting commitments. Aside from the Philippines, ACEN has RE projects in Australia, India, Indonesia, and Vietnam.
“We are delighted by the overwhelming support for ACEN’s green bond offering. This helps accelerate our aggressive renewables expansion and enables the green-led recovery,” ACEN President and CEO Eric Francia said in a statement.
“This is another landmark deal that demonstrates strong investor confidence in the Company’s strategic thrust to be a forerunner in the [RE] sector and sustainable investing,” ACEN CFO Cora Dizon said for her part.
AC Energy has been actively building capital since the start of the year, having raised Php5.37 billion from the stock rights offer in January and another Php13.1 billion from its follow-on offer in May. In March, Singaporean sovereign fund GIC Private Limited made an Php11.88 billion private placement. Together with the green bond offer, these form part of the firm’s target of having 5,000 megawatts in its renewables portfolio by 2025 and become Southeast Asia’s largest listed RE platform.