AC Energy raise $400 Million from green bond issue

AYALA-LED AC Energy, Inc. has valued its senior perpetual fixed-for-life green bond issuance at $400 million with a fixed coupon of 5.65% with no step-up and no reset, its listed unit said on Wednesday.

“This represents the first US dollar denominated fixed-for-life green bond ever issued globally,” AC Energy Philippines, Inc. told the stock exchange.

It said the 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 on SGX-ST. They are certified under the ASEAN Green Bonds Standards by the Philippine Securities and Exchange Commission on Nov. 18.

“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,” said AC Energy Philippines, which is 66.34% owned by AC Energy.

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.

The standards are part of the ASEAN Capital Markets Forum’s broader efforts in developing green finance for the region. They have been developed in collaboration with the International Capital Market Association.

AC Energy is the energy platform of Ayala Corp., one of the country’s largest business groups. It is one of the fastest growing energy companies with more than $1 billion of invested and committed equity in renewable and thermal energy in the Philippines and around the region.

The company aspires to exceed 5 gigawatts of attributable capacity and generate at least half of energy from renewables by 2025.

As of November 2019, AC Energy has a net attributable capacity of over 1,600 megawatts (MW), of which 600 MW is from renewable sources.