• Philippine Resources

AC Energy to Build New Power Plants

AC Energy Inc., the power unit of Ayala Corporation, may soon build new power plants in Luzon - with a combined capacity of 550 megawatts.

Documents submitted to the Department of Environment and Natural Resources stated that the power unit would develop a 150-MW diesel power plant in Mariveles, Bataan through Ingrid 2 Power Corp. A unit of AC Energy, Ingrid 3 Power, is also constructing a 400-MW diesel power plant project in Calaca, Batangas.

The Mariveles plant is estimated to cost P10 billion while Batangas at P17 billion, based on the documents.

Aside from these, AC Energy is also developing a 150-MW diesel power plant project in Pililla, Rizal, expected to be operational in 2021.

According to AC Energy president and chief executive Eric Francia earlier, they were considering an investment in technologies to complement renewable energy. “We believe the country will need more peaking and reserve, ancillary capacity…especially in a world where you inject more renewables,” he said.

Last November 27, AC Energy issued US dollar-denominated senior perpetual fixed-for-life (non-deferrable) green bonds totalling $300 million.

In a statement, Francia said, “We are very pleased to see the high level of investor confidence in AC Energy and the strong market response to our perpetual green bond, following our maiden green bond in 2019. We believe that this will power AC Energy in its pursuit to scale up renewable investments in the region as we continue the transition to a low carbon portfolio.”

AC Energy remarked it would use the net proceeds from the bonds to fund a tender offer and $400-million senior perpetual fixed-for-life notes callable in December 2022, and the balance to fund eligible green energy projects.

The bonds have a fixed coupon of 5.1 per cent. The issue represents the first Philippine fixed-for-life perpetual bond offering since November 2019. This is also the first public green bond out of the Philippines in 2020.

AC Energy Finance International Ltd, a wholly-owned subsidiary under a 2 billion dollar medium-term note program, issued the company-generated bonds, which the Philippine Securities and Exchange Commission has certified as ASEAN Green Bonds.

“We are grateful to have been met with such a positive reception among bond investors especially given the pandemic. This underscores the continued confidence investors have in AC Energy’s ability to execute in this challenging environment,” said AC Energy chief finance officer Cora Dizon.

AC Energy said the Green Bond Framework puts in place well-defined guidelines for the use of proceeds for renewable energy projects - with reporting commitments and comprehensive monitoring.


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