Ayala-led ACEN, through subsidiary ACE Endevor Inc., said it will pour in an additional Php2.3 billion to finance its 72-megawatt (MW) Arayat-Mexico solar farm joint venture (JV) with Citicore Solar Energy Corporation (CSEC) in Pampanga.
In a disclosure to the Philippine Stock Exchange, ACEN stated that ACE Endevor signed an Omnibus Agreement for a term loan facility with Greencore Power Solutions 3, Inc., the corporate entity for the ACEN-Citicore JV.
The loan will fund the project’s second phase, particularly its design, engineering, construction, procurement and supply, manufacturing, commissioning, start-up, testing, and operation and maintenance, among others. Phase 2, which would have a capacity of 30 megawatt alternating current or 43.68 megawatt direct current, is slated to begin commercial operations in February 2023.
“The loan will be secured by a real estate mortgage over the real assets of the Borrower, a pledge over the shares of the Borrower, and the cash flows of the project,” ACEN said in its disclosure.
The solar plant is part of ACEN’s bid to have 5,000MW of renewable energy portfolio by 2025. ACEN also sees this as an opportunity to develop a greenfield stand-alone solar farm, which will provide daytime power to the Luzon Grid.