Ayala firm hikes credit line with DBP to P5.5-B

Published June 15, 2020, 12:00 AM

by manilabulletin_admin

By Myrna M. Velasco

Ayala firm AC Energy Philippines (ACEPH) has increased its planned loan procurement with the Development Bank of the Philippines (DBP) to P5.5 billion from a previous leaner approval of the company’s board at P3.0 billion.

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

AC Energy President and CEO Eric T. Francia said the targeted borrowings shall be funneled to “general corporate purposes including investments.” No specific projects had been named at this time as to where the funding shall be earmarked.

The hike in the company’s credit line with DBP was part of the approvals given by the board of directors of ACEPH in their video-conference meeting on Monday (June 15); and as disclosed to the Philippine Stock Exchange.

It has to be noted that the Ayala firm has been lining up multiple projects in the Philippines – including solar projects in Alaminos, Laguna and Palauig, Zambales that will potentially yield aggregate 180 megawatts that could then beef up its domestic renewable energy (RE) portfolio.

The company also calendared this year the construction of the first phase of a proposed diesel-fired power facility in Pililla, Rizal that will have a capacity of 150MW; while the second phase of the same capacity will have to be decided subsequently.

Just in March this year, the company had likewise secured the nod of its board for additional US$300 million investment for two wind farm projects that shall be sited in Ilocos Norte and Bataan provinces.

AC Energy is casting portfolio growth trajectory that will have substantial capacity installations both for the Philippine energy market and for its targeted offshore markets. That is in keeping with the goal for 5,000 MW installations by year 2025.

Further on the June 15 board meeting of the Ayala firm’s board of directors, a go-signal was given to the proposed amendments in the power administration and management agreement with One Subic Power Generation Corporation.

The lease deal for One Subic Power with the Subic Bay Metropolitan Authority (SBMA) was supposed to lapse July 19 this year; but the parties agreed for an extension until July 19, 2030 with amendments on the facilities lease agreement (FLA) which is their binding contract for that venture.

The ACEPH board similarly approved the company’s acquisition of existing nominal shares and subscription to new shares so it can emerge as the controlling shareholder in special purpose vehicles that were used for development projects of the Ayala group.