DAGDAG RENEWABLES : AC Energy issues first green bonds


AC Energy, Inc., the energy arm of the Ayala conglomerate, has successfully issued $225 million from its maiden green bond issuance, which will fund its renewable energy portfolio expansion.

AC Energy said the initial US dollar-denominated senior green bond issuance has a five-year tenor and a coupon of 4.75 per annum, costing $99.451.

The bonds will be issued by AC Energy subsidiary AC Energy Finance International Limited, which will guaranteed by AC Energy.

The bonds will be listed in the Singapore Exchange Securities Trading Limited (SGX-ST).

“We are very pleased to see the success of our maiden Green Bond. This will enable AC Energy to scale up its renewable energy investments in the region,” AC Energy chairman Fernando Zobel de Ayala said.

“We are very encouraged by the strong reception among bond investors within the current volatile environment. This reflects confidence in AC Energy’s capability to execute its plans and meet investor expectations,” AC Energy CFO Cora Dizon said.

Climate Bonds Standard (CBS) from the Climate Bonds Initiative (CBI) awarded a certification to the said bonds. It will be the first publicly syndicated CBI-certified dollar-denominated green bond in Southeast Asia.

The CBS certification guarantees that proceeds from any issuance of bonds will be used to fund projects and assets that are consistent with delivering a low-carbon and climate resilient economy.

AC Energy’s Green Bond Framework lays out well-defined guidelines for renewable energy projects, with complete monitoring and reporting commitments.

Last year, AC Energy generated 2,800 gigawatt-hours (GWh) of attributable energy, with 48 percent coming from renewable sources.

The firm aims to reach 5 GW of renewable energy capacity, with renewables contributing at least 50 percent of total energy output by 2025.

AC Energy owns about 1.7 GW of generation capacity in operations and under construction, based on its equity interest in power generation businesses.

HSBC acted as sole global coordinator; Bank of America Merrill Lynch (BofAML) acted as sole green structuring agent, and BofAML, CLSA and HSBC acted as joint bookrunners and joint lead managers, with the participation of BDO Capital, BPI Capital Corp., and China Bank Capital as domestic managers.