The planned P10-billion maiden Peso Green Bond offering of AC Energy Corporation (ACEN) has been given the highest PRS Aaa issue credit rating with a Stable Outlook by Philippine Rating Services Corporation (PhilRatings).
The issue is intended to comply with the ASEAN Green Bonds Standards with proceeds to be used exclusively to fund eligible green projects.
Obligations rated PRS Aaa are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment on the obligation is extremely strong.
A Stable Outlook, on the other hand, indicates that the rating is likely to be maintained in the next 12 months.
PhilRatings said the assigned issue rating takes into account the aggressive expansion of ACEN’s power generation capacity throughout the region via partnerships with a focus on renewable energy.
It also considered the firm’s conservative capital structure and the significant turnaround upon AC Energy and Infrastructure Corporation’s (ACEIC) acquisition of a controlling stake in ACEN in 2019, with a strong pipeline of projects which will support improving profitability and cash flow generating ability moving forward.
Also factored in is the strong support from ACEN’s ultimate shareholder Ayala Corporation and its well-experienced management.
PhilRatings noted that the rating assigned is in relation to the ACEN’s capacity to pay the rated bonds only and is not an opinion on the bond’s adherence to the ASEAN Green Bonds Standards or environmental impact.
ACEN, its subsidiaries, and affiliates manage a diversified portfolio of power generation projects, and engage primarily in power project development and operations across the region.
As of June 28, 2022, the Company had a total net attributable capacity of 3,885 MW, of which 87 percent is renewable.
Since the acquisition of a majority stake by ACEIC, ACEN’s business has seen a significant turnaround, with a plan of building an all-renewables generation portfolio by 2025, strengthening ACEN’s balance sheet, expanding capacity, and taking strides to achieve long-term customer relationships.
ACEN is scaling up its renewable energy (RE) platform and existing partnerships with a strong 18,000-MW pipeline of RE projects in the region, in various stages of development.
The development of these projects is intended to help ACEN attain its objective of reaching 5,000 MW in attributable RE capacity, which the company says it is confident of reaching before 2025.
The geographically diverse projects of ACEN, together with its partnerships and joint ventures with strong local counterparts, are seen to mitigate risks.
Major power assets that are expected to be online by 2023 include the New England Solar Farm in Australia (521 MW), San Marcelino Solar (284 MW), Pagudpud Wind (160 MW) and Masaya Solar in India (336 MW).
These power assets are seen to support ACEN’s increasing capacity, further strengthen ACEN’s profitability and cash flow generation, and enable ACEN to meet its targets for 2025.