Ayala to invest $1 B for energy projects

Published December 8, 2019, 12:00 AM

by manilabulletin_admin

By Myrna M. Velasco

The energy investment platform of the Ayala Group will be investing $1 billion next year across five power markets that will include the Philippines, Vietnam, Australia, India and Myanmar.

AC Energy President and CEO Eric T. Francia
AC Energy President and CEO Eric T. Francia

The capital injection for mostly pipelined renewable energy (RE) projects in these five markets will bulk up the power-generating capacity of the company by an additional 1,500 megawatts upon completion, according to AC Energy President and CEO Eric T. Francia.

“Next year will be a massive reinvestment year for AC Energy as a group. This year, we raised a lot of funds. We sold down AA Thermal and we went to the capital markets twice,” he said.

Francia was referring to the perpetual green bond issuance of the company that raised $410 million in early part of the year. The company also raised $579 million from the sell-down of thermal assets to the Aboitiz group plus the stock rights offering that it will soon conclude at the local stock market.

From the fund-raising and the sell-down of its thermal capacity portfolio that closed last year, AC Energy raised $1.5 billion. But Francia said – “$500 million of that had already been committed given the investments we’ve done over the last 12 months in Vietnam, PHINMA Energy acquisition, and the PINAI (Philippine Investment Alliance for Infrastructure) plants.”

For the power plant ventures that will be advanced to construction phases next year, the AC Energy executive emphasized that “the critical mass will be Philippines, Australia and Vietnam – that will be over 400MW each of the 1,500MW and then there would be others – that would be India, Myanmar and other markets where our partnership platforms can gain traction.”

The power facilities will generally lean on RE technologies – spanning solar, wind, hydro and even hybrids – although for the Philippine market, there will be a thermal capacity installation of diesel technology to help serve the peaking capacity needs of the country.

“We expect this is predominantly renewables, so as a group this is AC Energy, Inc., and that will include Philippines and international. We’re looking to build over 1,500MW of attributable capacity to AC Energy for the financial close by 2020,” Francia said.