AC Energy subscribes P250 million in wholly owned SPV

MANILA, Philippines — Ayala power unit AC Energy Philippines Inc. has inked a subscription deal with wholly owned subsidiary Buendia Christiana Holdings Corp.(BCHC) for P250 million worth of shares.

In a disclosure to the Philippine Stock Exchange, AC Energy said it signed an agreement with BCHC for the subscription of 2.5 million redeemable Preferred B shares with a par value of P100 or a total of P250 million.

The shares are to be issued out of the increase in BCHC’s authorized capital stock.

“The subscription will be used by BCHC to fund acquisition of potential project sites,” AC Energy said.

BCHC is a special purpose vehicle which will own land for AC Energy’s development projects.

AC Energy said  the total of subscription price of P250 million would be paid in tranches, with P62.5 million payable on the date of the acquisition.

“The balance of the subscription price shall be payable upon demand of BCHC with the approval of BCHC’s board of directors,” AC Energy said.

It added that the transaction is subject to the necessary regulatory approvals from the Securities and Exchange Commission (SEC) on the increase in authorized capital stock of BCHC and full payment of the subscription price.

BCHC was incorporated and registered with the SEC in May last year.

AC Energy, meanwhile, aims to be the largest listed renewables platform in Southeast Asia, with the goal of reaching 5,000 megawatts capacity by 2025.

At present, AC Energy has about 1,300 MW of renewable energy capacity, 500 MW of which is in the Philippines, while 800 MW in the regional markets.

In the first half of the year, AC Energy reported a net profit of P1.96 billion, a turnaround from a net loss last year, as it completed its restructuring program following the acquisition of Phinma Energy Corp.

This was a significant turnaround from a P552-million loss in the same period last year.

The company attributed the strong performance to the successful infusion of AC Energy Inc.’s on-shore assets and recent acquisitions since the Ayala Group acquired Phinma Energy from the Del Rosario family for P6.3 billion last year.