ACEN Corporation, the renewable energy unit of the Ayala Group, reported that its subsidiary ACEN Indonesia Investment Holdings Pte Ltd., has forged a joint venture with PT Dewata Megaenergi to develop projects in Indonesia.

In a disclosure to the Philippine Stock Exchange (PSE), ACEN said the parties have signed a Shareholders’ Deed (or Shareholders’ Agreement) to develop renewable energy projects in Indonesia by establishing a joint venture platform, PT Dewata ACEN Renewables Indonesia.

The platform will explore potential renewable energy projects within Indonesia.

ACEN has recently raised P25 billion from the issuance of perpetual preferred shares which were listed on the Main Board of the PSE.

The firm said the amount raised will be used for the financing of new or existing Eligible Green Projects in accordance with the company’s Green Equity Framework.

This includes the refinancing of short-term bridge loans for Eligible Green Projects, and can enable more than 1 GW of renewable energy projects in the Philippines.

The offer is the first tranche under ACEN’s shelf registration of up to 50 million preferred shares rendered effective by the Securities and Exchange Commission.

The offer shares were met with strong demand from both institutional and retail investors allowing ACEN to fully exercise its oversubscription option of up to P12.5 billion on top of the base offer of P12.5 billion. ACEN’s issuance is the largest preferred shares offering in the Philippines since 2016.

“We are very thankful for the exceptional support that we received from investors. The additional capital further strengthens the company’s balance sheet and helps us accelerate our renewables expansion,” said ACEN President and CEO Eric Francia.

ACEN Chief Finance Officer Cora Dizon said, “the issuance is part of the company’s strategy to diversify its sources of funding, and to gain access to a wider base of investors.”

“Being the first of its kind in the Philippines with the fixed-for-life feature, we are delighted with the strong investor response, which is a testament to the strong alignment with ACEN’s sustainability focus and growth aspirations,” she added.

The Series A Preferred Shares carry an initial dividend rate of 7.1330 percent per annum, with a dividend rate re-setting on the 5th anniversary of the listing date.

The Series B Preferred Shares has a fixed dividend rate of 8.0000 percent per annum with no dividend rate re-setting, making it the first Philippine Peso-denominated fixed-for-life equity instrument listed on the PSE.

ACEN shall have the option to redeem (in whole but not in part) the Series A Preferred Shares and the Series B Preferred Shares starting on the third and 7th anniversary of the listing date, respectively, and on every dividend payment date thereafter.

The offer shares has cumulative and non-participating dividends based on the offer price of P1,000 payable quarterly in arrear.