AC Energy to tap green bond market anew

MANILA, Philippines — AC Energy Corp. announced Tuesday its plan to raise cash through a fresh issuance of green bonds for the company’s ongoing shift to clean energy.

The listed power unit of the Ayala Group told the stock exchange that its subsidiary, ACEN Finance Ltd., will issue senior guaranteed undated notes to be listed on the Singapore Exchange.

Investors seemed happy about the plan. As of 9:52 a.m., shares in AC Energy were trading up 1.30%.

The size and terms of the green bond sale will be determined “at a later time,” AC Energy said, adding it will also guarantee the debt papers. The offer will be part of the company’s $1.5-billion medium-term bond program that was approved “in principle” by the Singapore Exchange last August 26.

AC Energy is targeting to launch the debt notes on August 31.

“The Philippine Securities and Exchange Commission confirmed that the Notes comply with the requirements under the ASEAN Green Bonds Circular and qualify as an ASEAN Green Bond Issuance,” the company said.

Green bonds are a type of debt papers sold to raise capital for projects that would benefit the environment and help fight climate change.

Although this category of fixed-income securities only corners a small share of the total debt market, it has become popular especially among companies that are cutting carbon emissions since shifting to clean power investments is a capital-intensive move.

Following the integration of the company’s energy assets abroad, renewables now account for 80% of AC Energy’s capacity. In the first half, renewable sources accounted for 52% of AC Energy’s total output.

The Ayala Group is planning to fully abandon its coal investments by 2030.

Based on latest company disclosures, AC Energy currently has over 1,000 MW of attributable capacity under construction, with over half of the projects expected to be operational within the next 6-12 months.