AC Energy eyes $400M from green bonds

By Jordeene B. Lagare September 3, 2021
https://www.manilatimes.net/2021/09/03/business/top-business/ac-energy-eyes-400m-from-green-bonds/1813313

AC Energy Corp. said on Thursday it is targeting to raise $400 million from the issuance of fixed-for-life green bonds to fund its renewable energy projects.

In a disclosure, AC Energy said its wholly-owned subsidiary ACEN Finance Ltd. has successfully set the terms of its US dollar-denominated senior guaranteed undated fixed-for-life (non-deferrable) green bonds.

The green bonds will be issued under its $1.5-billion medium-term note program and be listed on the Singapore Exchange Securities Trading platform.

It has a fixed coupon of 4 percent for life with no step-up and no reset, priced at par.

According to AC Energy, pricing for the bonds was at 4 percent, which was 45 basis points tighter than the initial price guidance.

The final order book volume exceeded $2 billion, attracting a wide range of high-quality investors, it added.

"We are delighted by the overwhelming support for ACEN's green bond offering. This helps accelerate our aggressive renewables expansion and enables the green-led recovery," said AC Energy President and Chief Executive Officer Eric Francia.

"This is another landmark deal that demonstrates strong investor confidence in the Company's strategic thrust to be a forerunner in the renewable energy sector and sustainable investing," said AC Energy Chief Finance Officer Cora Dizon.

Net proceeds from the green bond issuance will be used to finance or refinance new or existing eligible green projects, in accordance with the company's Green Bond Framework.

This framework sets out well-defined guidelines for the use of proceeds for renewable projects, located here and abroad, with comprehensive monitoring and reporting commitments.

BPI Capital Corp. is the sole global coordinator for the transaction, while BPI Capital, Credit Suisse (Singapore) Ltd., Deutsche Bank AG Singapore Branch, Goldman Sachs (Singapore) Pte., Morgan Stanley Asia (Singapore) Pte., and UBS AG Singapore Branch are the joint lead managers and joint bookrunners.

China Bank Capital Corp., First Metro Investment Corp., PNB Capital and Investment Corp., and RCBC Capital Corp. acted as domestic lead managers in the bond issuance.

Earlier, the Securities and Exchange Commission confirmed the bonds comply with requirements under the Asean Green Bonds Circular and qualify as an Asean Green Bond Issuance.

AC Energy has attributable capacity of 2,600 megawatts (MW) in the Philippines, Vietnam, Indonesia, India and Australia.

It aspires to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 5,000 MW of renewables capacity by 2025.