ADB supercharges Ayala's EV ambitions with $100-million investment


Ayala Corporation has secured a $100-million (about P5.841 billion) financing deal with the Asian Development Bank (ADB) to accelerate the development of an electric mobility ecosystem in the Philippines. 

“This funding will be used to procure and install electric vehicle charging stations (EVCS) and to purchase electric vehicles for commercial distribution,” ADB said in a Jan. 27 statement. 

According to the Manila-based multilateral lender, the funding package also includes a concessional loan from the Canadian Climate and Nature Fund for the Private Sector in Asia (CANPA). 

This blended financing involves a special pricing system to fasttrack the deployment of charging stations. Also, a portion of the funding will be used to buy electric vehicles from top manufacturers to be distributed across the Philippines.

Pavit Ramachandran, ADB country director, said that with this initiative, “we are not only addressing critical environmental challenges such as air pollution, but also driving economic growth through the creation of green jobs, enhancing energy security, and promoting inclusive and resilient urban development."

ADB noted that the development of electric vehicles (EVs) in the country remains in its early stages, explaining that “high initial costs, limited charging infrastructure, and evolving technologies have posed significant barriers to adoption of EVs in the country.” 

However, the government’s law on EV industry development and various tax incentives are “helping create a more favorable environment for the growth of the EV sector,” it also said. 

ADB said that the charging stations which will be set up with the bank’s funding “will address gaps in EV charging infrastructure, thereby facilitating faster adoption of electric vehicles.”

For Ayala Corporation’s part, ACMobility’s president and CEO Jaime Alfonso Zobel de Ayala said the blended financing comes at the right time as the company “continues to ramp up its electric mobility investments.”

“As we help build a comprehensive EV ecosystem for the Philippines, we wish to thank like-minded institutional partners like ADB for helping us expand our electric mobility initiatives, accelerate our contribution to the Philippines’ climate goals, and reaffirm our purpose of building businesses that enable people to thrive,”  Zobel de Ayala said. 

CANPA is a trust fund managed by ADB, with Can$360 million support from the Canada government. It aims to support private-sector projects in Asia and the Pacific that focus on climate and nature-based solutions, and gender equality.

Ayala Corporation is one of the country’s largest conglomerates. With a diverse portfolio that includes real estate, banking, telecommunications, and renewable energy, ADB said “the company is well-positioned to lead the development of the electric mobility ecosystem in the Philippines.”