By
Lenie Lectura- November 28, 2019
AC Energy Inc.
has successfully launched $400-million, fixed-for-life green bonds to finance
the expansion of planned renewable-energy (RE) projects.
The power arm of
conglomerate Ayala Corp. said Wednesday that it has successfully set the
terms of its inaugural US dollar-denominated, senior perpetual fixed-for-life
green bond issuance at an aggregate principal amount of $400 million, with a
fixed coupon of 5.65 percent for life and with no step-up and no reset.
This, it said,
represents the first US dollar-denominated fixed-for-life green bond ever
issued globally.
The green bonds will be
issued by AC Energy Finance International Ltd., a wholly owned subsidiary of AC
Energy, and will be guaranteed by AC Energy. The bonds will be listed at the
Singapore stock exchange.
“AC Energy plans to
deploy the funds for renewable-energy expansion across the Asia-Pacific region
to include the Philippines, Indonesia, Vietnam, Myanmar, India and Australia,
among others,” it said.
To date, AC Energy
has a net attributable capacity of over 1,600 megawatts, of which 600 MW is
from renewable sources. As one of the fastest-growing energy companies with
over $1 billion of invested and committed equity in renewable and thermal
energy in the Philippines and around the region, AC Energy aspires to achieve 5
GW of attributable renewable-energy capacity, and generate at least 50 percent
of total energy output from renewables by 2025.
“We are very pleased to
see the strong reception among bond investors for our maiden perpetual green
bond,” said AC Energy President Eric Francia. “We expect to add well over 1000
MW of renewables capacity in 2020, and this fresh capital will further cement
AC Energy’s commitment towards renewable energy and sustainability, and will
support the company’s scaling up of renewable-energy investments in the Asia
Pacific.”
The Asean Green Bonds
Standards is an initiative that facilitates Asean capital markets in tapping
green finance to support sustainable regional growth and meet investor interest
for green investments and is part of the Asean Capital Markets Forum’s broader
efforts in developing green finance for the region. The Asean Green Bonds Standards
have been developed in collaboration with the International Capital Market
Association.
AC Energy Chief Finance
Officer Cora Dizon lauded the inaugural perpetual fixed-for-life green bond as
a step toward widening the company’s investor base. “We recognize the
fast-growing investor demand for green bonds, which we are leveraging to
strengthen and diversify our sources of capital,” said Dizon. “The strong
investor demand generated interest of over $1.2 billion and allowed the company
to raise $400 million.”
BPI Capital Corp. is
the Sole Global Coordinator for the transaction, while BPI Capital Corp., CLSA
Singapore Pte. Ltd., Credit Suisse (Hong Kong) Ltd. and UBS AG Singapore Branch
(B&D) are the Joint Lead Managers and Joint Bookrunners for the transaction
with the participation of BDO Capital & Investment Corp., China Bank
Capital Corp., First Metro Investment Corp., PNB Capital & Investment Corp.
and RCBC Capital Corp. as Domestic Lead Managers.
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