Ayala-led ACEN Corporation (ACEN) aims to fast-track its expansion for renewable energy (RE) after announcing the issuing of its Php 25 billion perpetual preferred shares.
“We are very thankful for the exceptional support that we received from investors. The additional capital further strengthens the company’s balance sheet and helps us accelerate our renewables expansion.” ACEN president and CEO Eric Francia said.
The offer shares is the first phase of ACEN’s shelf registration of up to 50 million preferred shares that the Securities and Exchange Commission (SEC) rendered effective.
The initial dividend rate for the Series A Preferred Shares is 7.1330% annually, and this rate is subject to change on the five-year mark of the listing date.
The Series B Preferred Shares, on the other hand, are the first fixed-for-life equity instrument priced in Philippine Pesos listed on the PSE. They have a fixed dividend rate of 8.0000% annually and do not have a dividend rate reset.
On the third and seventh anniversary of the listing date, as well as on each subsequent dividend payment date, the firm would have the option to redeem the Series A and Series B Preferred Shares. Based on the offer price of Php 1,000.00, the shares have cumulative and non-participating dividends that are paid “quarterly in arrears.”
The shares offered to the public attracted strong interest from both individual and institutional investors. Because of this high demand, ACEN was able to fully utilize its oversubscription option of up to Php 12.5 billion, in addition to the base offer at the same price.
“The issuance is part of the company’s strategy to diversify its sources of funding and to gain access to a wider base of investors. Being the first of its kind in the Philippines with the fixed-for-life feature, we are delighted with the strong investor response, which is a testament to the strong alignment with ACEN’s sustainability focus and growth aspirations,” said ACEN chief finance officer Cora Dizon.
ACEN earlier reported that the funds raised could fund more than 1 GW of renewable energy projects in the country and would be used to finance both new and existing Eligible Green Projects in accordance with the company’s framework on Green Equity.