Philippines-Based AC Energy Launches $400 Million Green Bonds

Funds to be used for the expansion of renewable energy across the Asia Pacific region


AC Energy, the energy platform of Philippines-based Ayala Corporation, has launched its non-deferrable green bonds.

The aggregate principal amount is $400 million, with a fixed coupon of 5.6% for life. This marks the first-ever dollar-denominated fixed-for-life green bond ever issued in the world, according to the company.

The bonds are set to be listed on the Singapore Exchange Limited (SGX-ST) and have been certified under the ASEAN green bonds standards set up by the Philippines Securities and Exchange Commission.

AC Energy is planning to use the funds for the expansion of renewable energy across the Asia Pacific region, which includes the Philippines, Indonesia, Vietnam, India, Myanmar, and Australia, among others.

Commenting on the latest move, CEO of AC Energy, Eric Francia, said, “We expect to add well over 1 GW of renewables capacity in 2020, and this fresh capital will further cement AC Energy’s commitment towards renewable energy and sustainability and will support the company’s scaling up of renewable energy investments in the Asia Pacific.”

Out of the company’s total of 1.6 GW of attributable capacity, 600 MWs come from renewable energy sources. The company is aiming at achieving 5 GWs of due renewable energy that would account for 50% of the total energy capacity by 2025.

Earlier this year, the International Finance Corporation (IFC) announced that it had committed an investment of $75 million (~₹5.3 billion) in the first-ever listed green bond issued and guaranteed by AC Energy. IFC’s investment anchored a $300 million (~₹21.4 billion) green bond, attracting interest from international and Philippine’s institutional and bank investors. It was the first climate bond certified infrastructure-focused green bond to be publicly listed in Southeast Asia.

Previously, it was reported that the Asian Development Bank (ADB) had invested $20 million in the first climate bond issuance of AC Energy. ADB acted as the anchor investor in the 10-year tranche, contributing a total issue volume of $410 million.