HSBC backs funding for ACEN’s wind farm in Ilocos Norte

MANILA, Philippines — The Philippine arm of British banking giant HSBC is strongly supporting the multi-billion peso wind mill project of Ayala-led ACEN Corp. (formerly AC Energy Corp.) in Pagudpud, Ilocos Norte.

Trish Ramos, head of global trade and receivables finance at HSBC Philippines, said the bank’s trade facilities would help ensure unhampered progress in the completion of the Pagudpud Wind project, providing timely access to credit to secure the plant’s primary components.

“HSBC is widely known in the market for its innovative products and sustainable financing solutions. We are very pleased to be playing a part in the growth of the Philippines’ emerging renewable energy sector,” Ramos said.

The British bank issued its first sustainable commercial Letter of Credit (LC) to support the completion of ACEN’s Pagudpud Wind Farm under the special purpose vehicle, wholly owned Bayog Wind Power Corp.

The trade facilities provide LC capabilities to the wind project at a critical moment as they progress toward completing the Pagudpud Wind Farm development.

Once operational, the 32-turbine, 160-MW onshore wind power development located in the province of Pagudpud, Ilocos Norte will contribute to the government’s goal to reach a more sustainable energy mix, with at least 50 percent renewable sources by 2040.

It is also set to support inclusive and sustainable growth in Ilocos Norte by encouraging further investment and creating skilled job opportunities for local community.

The wind farm is projected to generate 504 GWh of renewable energy per year and avoid 344,604 metric tons (MT) of carbon dioxide emissions annually. It is also expected to create about 380 jobs within the community.

Pagudpud Wind has over 3,000-MW of attributable capacity in the Philippines, Vietnam, Indonesia, India, and Australia.

ACEN’s aspiration is to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 5,000-MW of renewables capacity by 2025. In October 2021, ACEN announced its commitment to achieve net-zero greenhouse gas emissions by 2050.

HSBC Philippines wholesale banking head Mimi Concha said the project is in line with the bank’s sustainability agenda.