In a drive to expand its renewable energy portfolio, ACEN Corp. is looking at a P30 billion loan for capital expenditures this year.
In a report from the Philippine Star, Cora Dizon, the Chief Financial Officer (CFO) and treasurer of ACEN, said that the company is expected to secure an additional loan amounting to P30 billion, on top of an equity offering through preferred shares.
A revision to the company’s articles of incorporation was approved by its investors yesterday, allowing for the issuance of preferred shares. The process will involve the reclassification of 100 million unissued common shares into preferred shares, which will diversify the company’s funding. The company will also have access to a large number of institutional and retail investors by issuing preferred shares.
To expand its portfolio of renewable energy sources, ACEN has allocated P50 billion to P70 billion in capital investments this year.
ACEN president and CEO Eric Francia confirmed that there is still an outstanding cash balance, estimated to be P30 to P35 billion, in their balance sheet as of December 2022.
Francia added that the ACEN has 2,400 MW of capacity under development at the end of 2022, with the majority of that capacity being put to use this year.
During ACEN’s annual stockholders’ meeting, Francia said, “We are currently building 1000 MW of renewables in the Philippines. This will add much-needed capacity to the system and allow ACEN to have surplus energy and expand its customer base.”
This year, ACEN Corp. is preparing to start up the operations of solar and wind projects totaling at least 700 MW – which could help alleviate the supply pressure and help achieve the Philippines’ renewable energy targets.