ACEN to offer Peso-denominate green bonds

The proceeds from the $177.8m bonds will be used for its three solar projects.

Philippine-based ACEN’s Executive Committee has approved the issuance of up to around $177.8m (P10b) in fixed-rate green bonds with a five-year tenor.

Proceeds will be used for the construction of its three solar projects.

In a statement, ACEN said the debut Peso-denominated green bonds are the first tranche of a shelf registration program of up to around $533.1m (P30b).

The green bonds to be issued will allow the company to diversify to fund its “aggressive expansion” in the Philippines’ renewable energy sector.

Proceeds from the bonds will be used for the 283-megawatt, direct current (MWdc) San Marcelino Solar farm in Zambales province, 42-MWdc expansion of the 72-MWdc Arayat-Mexico Solar farm in Pampanga province, and the construction of the 133-MWdc  first phase of the Cagayan Solar farm in Lal-lo in Cagayan province.

“Since our debt levels remain very manageable, we are taking this opportunity to issue Peso green bonds to fund our renewable energy expansion in the country. At the same time, we are able to contribute to the development of the Philippine debt capital market and provide local investors a chance to invest in sustainable financing instruments,” said ACEN Chief Financial Officer and Treasurer Ma. Corazon G. Dizon.

ACEN said the offering, which received the highest possible rating awarded by the Philippine Rating Services Corporation, is intended to comply with the ASEAN Green Bond Standards.

The company will also seek the confirmation of the Securities and Exchange Commission for such compliance.

ACEN currently has around 3,400MW of renewable energy capacity and aims to build 5,000MW of renewables by 2025 to be the largest listed renewables platform in Southeast Asia.

$1 = P56.27