Ayala-led ACEN will be advancing a Php1.139 billion loan to partner firm Natures Renewable Energy Development Corporation (NAREDCO) to kickstart the construction of the 200-megawatt (MW) Lal-lo solar farm in the Cagayan Province.
NAREDCO is the special purpose vehicle for ACEN’s joint venture with CleanTech Renewable Energy 4 Corporation for the Cagayan solar project.
“NAREDCO has agreed to secure the Loan with parcels of land where the Lal-lo Solar Power Project will be located as well as CREC4’s shares in NAREDCO,” ACEN announced in a disclosure to the Philippine Stock Exchange (PSE) on Friday.
The Ayala company said that the loan would provide NAREDCO with the short-term financing needed to allow the early issuance of the Notice-to-Proceed (NTP) to the project’s engineering, procurement, and construction (EPC) contractor.
“ACEN will be repaid from the proceeds of the third-party project finance or NAREDCO’s issuance of additional RPS (redeemable preferred shares) in favor of ACEN,” it added.
In related developments, ACEN’s board of directors also approved the said joint venture deal with CleanTech Global Renewables Inc – which was finalized back in March.
The Cagayan solar farm will add around 100 MW of renewable energy to ACEN’s power generation portfolio, as part of its goal of attaining a 5,000 MW all-RE portfolio by 2025.