Singapore state fund completes P11.9 billion placement in AC Energy

MANILA, Philippines — The unit of Singapore state fund GIC Private Ltd. completed yesterday the first phase of its investment in AC Energy Corp. (ACEN).

In a disclosure to the Philippine Stock Exchange yesterday, ACEN said GIC-affiliate Arran Investment Pte Ltd. subscribed to four billion primary shares via a private placement, raising P11.88 billion.

ACEN will use the additional capital to fund its various developmental and operating projects, as well as potential acquisitions.

“We are delighted to welcome GIC to our energy platform. We have been partners in the Bank of the Philippine Islands and we are delighted to build on this relationship in another fast growing and dynamic sector,” Ayala Corp. chairman and CEO Jaime Augusto Zobel de Ayala said.

“Ayala and GIC are both committed to sustainable investments, and we are excited to be partners in ACEN as the company transitions to a low-carbon portfolio. GIC provides not only growth capital but also the experience and network that will help us scale up our renewables investments,” Ayala Corp. president and COO and ACEN chairman Fernando Zobel de Ayala said.

The private placement is the first tranche of GIC’s investment to achieve a 17.5 percent ownership stake in ACEN, which will be implemented through a combination of subscription to four billion primary shares via a private placement, and the purchase of secondary shares from ACEIC.

The top up will enable GIC to achieve the target 17.5 percent ownership stake in ACEN, taking into consideration GIC’s expected future dilution, including from the planned infusion of ACEIC’s international assets into ACEN.

“GIC is pleased to partner with the Ayala Group, the largest and oldest conglomerate in the Philippines, in their journey to build one of Southeast Asia’s leading renewables platforms. With AC Energy’s geographically diversified portfolio of renewable energy assets and proven track record of profitable growth, we believe the company is well-positioned to capture the shift from fossil-based to clean, sustainable energy in the region”, said Ang Eng Seng, GIC’s chief investment officer for Infrastructure.

With the completion of GIC’s private placement, GIC’s senior vice president for Infrastructure Nicole Goh Phaik Khim was elected as director during the Board meeting that followed the closing of the private placement.

The completion of the purchase by the GIC affiliate of secondary shares from ACEIC is subject to the completion of the infusion by ACEIC of its international assets into ACEN by way of a property for shares swap, and applicable regulatory approvals. AlphaPrimus Advisors acted as financial advisor to ACEN and ACEIC for this transaction.

The completion of Arran’s acquisition of additional common shares in ACEN is expected by the third quarter of 2022.

ACEN, the energy platform of Ayala Corp., is one of the fastest growing energy companies with over $1 billion of invested and committed equity in renewable and thermal energy in the Philippines and around the region.

The company aspires to become the largest listed renewables platform in Southeast Asia, with the goal of reaching 5,000 megawatts of renewables capacity by 2025.