ACEN to raise P10 billion from green bonds

ACEN Corp. plans to raise P10 billion from the first tranche of its planned green bond offering to bankroll three solar projects.

In a disclosure to the Philippine Stock Exchange yesterday, ACEN said its executive committee approved a P30-billion debt securities program, which will be issued in one or more tranches.

This will be filed with the Securities and Exchange Commission (SEC) for a three-year shelf registration.

Under the proposed debt securities program, ACEN plans to issue up to P10 billion peso-denominated ASEAN green fixed rate five-year bonds for the first tranche.

This will be applied for listing at the Philippine Dealing and Exchange Corp. (PDEx).

Proceeds will be used to fund the construction of the expansion of the Arayat-Mexico Solar Power Project, Cagayan Solar I and the Phase I of the San Marcelino Solar Project, as well as its transmission line.

In an interview yesterday, ACEN president and CEO Eric Francia said the three solar projects would be constructed this year and are targeted for completion next year.

“All of these are for completion next year. Arayat is the only expansion, while the other two are new projects. Cagayan and San Marcelino have expansion plans. These are just the first phase of these projects,” he said.

The 42-megawatt (MW) phase 2 of the Arayat-Mexico solar farm will increase its total plant capacity to 116 MW.

The solar expansion is under Greencore Power Solutions 3 Inc., the special purpose vehicle which is 50 percent owned by Citicore Solar Energy Corp. (CSEC), 45 percent owned by ACEN Corp. and five percent owned by ACE Endevor Inc.

Cagayan Solar I has a capacity of 133 MW and is under Natures Renewable Energy Devt. Corp. (NAREDCO).

NAREDCO is a joint venture among ACEN, ACE Endevor, CleanTech Global Renewables Inc’s subsidiary CleanTech Renewable Energy 4 Corp. (CREC4).

Meanwhile, the 283.7-MW San Marcelino Solar Farm in Zambales started construction in November last year.

ACEN aspires to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 5,000 MW of renewables capacity by 2025.

Currently, the company has 3,800 MW of attributable capacity in the Philippines and across the region, of which 3,300 MW are renewable, putting the company in a strong position to reach its capacity target earlier than 2025.

The company’s renewable share of capacity is at 87 percent, among the highest in the region.