The executive committee of Ayala-led ACEN has approved the offer and issuance of up to Php 10 billion in fixed-rate green bonds with a five-year tenor.
“Since our debt levels remain very manageable, we are taking this opportunity to issue Peso green bonds to fund our renewable energy expansion in the country. At the same time, we are able to contribute to the development of the Philippine debt capital market and provide local investors a chance to invest in sustainable financing instruments,” ACEN chief financial officer and treasurer Ma. Corazon Dizon said in a statement.
The fixed-rate green bonds will serve as the first tranche of ACEN’s Php 30 billion debt securities to be filed to the Securities and Exchange Commission (SEC).
“The Company has been authorized to file a registration statement covering the debt securities program from which the Fixed-Rate Green Bonds will be issued.” ACEN said in its disclosure.
The said transaction will be requiring regulatory approvals from the SEC and the Philippine Dealing & Exchange Corp.
Proceeds from the peso bond issue will be used to fund ACEN’s “aggresive expansion in the local renewable energy sector.” Among the projects to be funded by the green bonds include the expansion of the 72 megawatt (MW) Arayat-Mexico Solar Farm in Pampanga and the 133 MW Cagayan Solar 1 project in Lal-lo, Cagayan.
“The bonds are intended to comply with ASEAN Green Bond Standards, which require proceeds to be used exclusively for the funding of eligible green projects,” ACEN said.
ACEN currently has an attributable capacity of 3,800 MW across the Asia Pacific and is looking to achieve a 5,000 MW all-RE portfolio by 2025.