ACEN signs P11-B sustainability-linked loan facility

ACEN signs P11-B sustainability-linked loan facility

AYALA-LED ACEN Corp. inked an P11-billion sustainability-linked loan facility with the Asian Development Bank (ADB) and the Bank of the Philippine Islands (BPI) to finance solar projects.

“This financing is not just a loan; it is a clear testament of our unwavering commitment to our sustainability ambitions as we set the stage for accelerated growth in the renewables sector,” ACEN President and Chief Executive Office Eric T. Francia said in a stock exchange disclosure on Thursday.

He said that the loan is an “instrumental step” for the company’s ambitious target of reaching an installed energy capacity of 20 gigawatts by 2030.

Corazon G. Dizon, chief finance officer of ACEN, said that the loan “aligns with our priorities and enables us to consistently invest in sustainable energy infrastructure towards our net zero transition goal.”

The company also said that the facility supports its aspiration to “become the largest listed renewables platform in Southeast Asia and will contribute to the development of solar projects.”

In a separate disclosure, ACEN said that it had subscribed to 22.33 million common shares with a par value of P1 per share or a total par value of P22.33 million of its subsidiary Belenos Energy Corp.

It also subscribed to 200.93 million redeemable preferred shares with a par value of P1 or a total par value of P200.93 million.

The subscription will be issued out of the increase in the authorized capital stock of Belenos, which is ACEN’s special purpose vehicle for development projects in the Philippines.

In total, ACEN’s subscription is valued at P223.25 million with an initial payment of P25 million.

“The acquisition will allow ACEN to have a significant ownership in Belenos and is meant to implement Belenos’ investment into a potential renewable energy project,” ACEN said.

The company also said that it had joined as a member of global group Powering Past Coal Alliance (PPCA) at the Conference of the Parties or COP28.

“It is an opportune time for ACEN to join PPCA. As ACEN continues to lead pioneering initiatives such as the world’s first market-based Energy Transition Mechanism and the recently announced Transition Credit pilot, there is much benefit to connecting with the PPCA network to further these innovative transition initiatives,” Mr. Francia said.

With the induction, ACEN will commit to a “healthier, cleaner planet, marking a significant stride in the global movement towards a sustainable future,” it said.

To date, ACEN has around 4,430 megawatts of renewable capacity spread across the Philippines, Vietnam, Indonesia, India, and Australia.

On Thursday, shares of the company rose by three centavos or 0.68% to P4.46 apiece. — Sheldeen Joy Talavera