Ayala Energy taps ₱8-B loan to fund projects

Published November 19, 2019, 12:00 AM

by manilabulletin_admin

By Myrna M. Velasco

AC Energy Philippines Inc. (ACEPH), the energy investment arm of the Ayala group will be tapping ₱8.0 billion worth of short-term credit facilities as approved by the firm’s board of directors.

ac energy logo

The company has not specified where it will be funneling the funds for, but it recurrently stated previously that it will be pursuing various renewable energy projects in the country until it reaches an aggregate capacity of 2,000 megawatts.

In a disclosure to the Philippine Stock Exchange (PSE), the Ayala firm indicated that its newest targeted venture will be a solar power facility in Palauig, Zambales that shall be undertaken through its subsidiary AC Energy Development Inc., a project corporate vehicle that shall soon be renamed as AC Endevor Inc.

The propounded Palauig solar farm has no specific capacity target yet – but this is one of the initial 200MW developments that the company had unveiled middle part of this year.

As ACEPH completes it asset swap process with affiliate AC Energy Inc., several developments had also gotten the nod of the company’s board of directors – including the share purchase agreement with the Philippine Investment Alliance for Infrastructure (PINAI) fund for the acquisition of the latter’s equity in the 81-megawatt wind farm project in Pagudpud, Ilocos Norte.

Further, the board of ACEPH had greenlighted the purchase of 100-percent of PINAI fund’s ownership interest in the San Carlos Solar Energy Inc. (SACASOL), the operator of a 45MW solar farm in San Carlos City, Negros Occidental.

Just recently, AC Energy Inc. similarly reported that it already executed a deed of assignment with ACEPH on the latter’s shares subscription from the original energy investment platform of the conglomerate.

AC Energy Philippines is the transferee-company of the assets that the Ayala firm had acquired from PHINMA Energy Corporation of the Del Rosario group.

The deed of assignment on AC Energy’s share swap with ACEPH had been concluded and signed on November 12 (Tuesday), based on legal documents submitted by the company to the PSE.

In addition, the Ayala energy firm noted that its authorized capital stock had been hiked to P24 billion from originally at P8.4 billion.

“AC Energy offered to transfer and convey to ACEPH all its rights to and interest in the properties in exchange for and in payment of AC Energy’s subscription to common shares of stock of ACEPH,” the company has stipulated.

It was further stated that ACEPH “is willing to accept the properties and issue the corresponding number of common shares of stock of ACEPH” – and such had been specified in the transaction documents.
Schedule 1 of the shares subscription entailed 6,185,182,288 common shares valued at P2.37 per share or for a total transaction value of P14.658 billion.

AC Energy currently owns 66.34-percent of the outstanding capital stock of ACEPH – and upon completion of the transaction, the former will already own 81.51-percent of AC Energy Philippines.

On its increased capital stock, it was noted that “within 15 days after the approval by the SEC (Securities and Exchange Commission) of the increase in the authorized capital stock of ACEPH to which the subscription herein is effected, ACEPH shall issue to AC Energy the stock certificate corresponding to its subscription to the exchange shares.”

The properties that had been covered by the share swap include project corporate vehicles AC Energy Development Inc., Monte Solar Energy Inc., Ingrid Power Holdings Inc., South Luzon Thermal Energy Corporation, Philippine Wind Holdings Inc., ACTA Power Corporation, Moorland Philippines Holdings Inc., Manapla Sun Power Development Corporation, Viage Corporation and NorthWind Power Development Corporation.

Of the assets that had been the subject of the shares exchange, it was indicated that AC Energy Development is in the process of changing its corporate name to ACE Endevor Inc.; while Moorland Philippines is undergoing renaming process to ACE Renewables Inc.