Ayala-led AC Energy Corporation (ACEN) is eyeing to fetch $400 million in gross proceeds from its issuance of senior guaranteed undated green bonds with non-callable 3.5-year fixed-for-life or non-deferrable term.

In a media statement, the Ayala firm emphasized that the green bonds had been priced at 4.0-percent and the issuance was “more than five times oversubscribed.”

The pricing for the bonds, it was noted, was “45 basis points tighter than the initial price guidance.” The final order book volume exceeded $2.0 billion and such was a manifestation that the issue has been “attracting a wide range of high quality investors.”

Proceeds from that fund-raising activity, the publicly listed company indicated, “will be used to finance or refinance ACEN’s renewable energy projects.”

The US dollar-denominated green bonds issuance of ACEN was confirmed by the Securities and Exchange Commission (SEC) to have complied with the requirements and will qualify under the ASEAN Green Bonds issuance platform.

As specified, the bonds “will be issued by ACEN Finance Limited under its US$1.5 billion medium-term note program,” and it will be guaranteed by ACEN. The bonds shall also be listed with the Singapore Exchange Securities Trading Platform (SGX-ST).

In this bond issue, BPI Capital Corporation has been tapped as sole global coordinator; while BPI Capital Corporation, Credit Suisse (Singapore) Limited, Deutsche Bank AG Singapore Branch, Goldman Sachs (Singapore) Pte., Morgan Stanley Asia (Singapore) Pte., and UBS AG Singapore Branch have been engaged as joint lead managers and joint bookrunners.

The domestic lead managers for this transaction will be China Bank Capital Corporation, First Metro Investment Corporation, PNB Capital and Investment Corporation and RCBC Capital Corporation.”

Cora Dizon, chief finance officer of AC Energy, asserted “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.”

ACEN has been advancing heaps of utility-scale renewable energy projects – not just in the Philippines, but also in offshore markets like Vietnam, India and Australia, in line with its portfolio buildup target of 5,000 megawatts by 2025.

In the Philippine market, the Ayala energy company has a good mix of solar and wind farm installations that will help reinforce electricity supply in the country, especially with the post-pandemic economic recovery being cast by government leaders.