ACEN Corporation, the energy investment arm of the Ayala group, will be issuing P30-billion worth of debt securities to bankroll its array of renewable energy projects.
In a disclosure to the Philippine Stock Exchange (PSE), the company indicated that it will file an application with the Securities and Exchange Commission (SEC) for three-year shelf registration of its debt securities program.
Out of the P30 billion to be fetched from the capital market, ACEN stated that P10 billion will account for peso-denominated ASEAN Green fixed green bonds with five-year tenor to be listed with the Philippine Dealing & Exchange Corporation.
The projects to be financed from bond proceeds include the expansion of its 72-megawatt Arayat-Mexico solar farm; the 100MW Cagayan solar 1 project; as well as phase 1 of the 283MW San Marcelino solar farm development along with the transmission line component.
In line with the planned securities issuance, the management of ACEN led by its President and CEO Eric T. Francia had been directed “to appoint the transaction parties – including the issue managers, joint lead underwriters and bookrunners,” as well as the auditors “for the review of financial statements, legal counsels for the review and preparation of various documents for the issuance of the bonds.”
The firm will also tap the credit rating agency, trustee, registrar and paying agent; and will similarly determine the listing venue of the bond issuance.
On the authority of its Board, the executive committee of the company further approved “the total transaction costs related to the bond issuance of up to 1.4-percent of the issue size.”
Relative to the use of proceeds, the company had likewise approved the list of renewable energy projects that are “eligible to receive proceeds from the bonds.”
The Ayala group has massive-scale target of RE projects that it will be advancing to commercial fruition not just in the Philippines, but also in offshore domains – primarily Australia and other Asian markets as well as in the United States – and the core focus of ACEN’s investments are generally in solar and wind farm installations.
Beyond the 5,000MW pipeline that it is eyeing to accomplish by 2025, ACEN has recently expanded its pipeline to 18,000MW and these shall be programmed for developments until year 2030.