ACEN gets highest rating for planned green bond issue

MANILA, Philippines — ACEN Corp. has obtained the highest credit rating from local debt watcher Philippine Rating Services Corp. (PhilRatings) for its proposed debut peso green bond issue of up to P10 billion.

The P10 billion in fixed-rate green bonds, with a five-year tenor, has been assigned an issue credit rating of PRS Aaa, with a stable outlook.

Obligations rated PRS Aaa are of the highest quality with minimal credit risk.

Philratings said the bonds are intended to comply with the ASEAN Green Bonds Standards, which require proceeds to be used exclusively to fund eligible green projects.

ACEN’s fixed-rate five-year green bonds is the first tranche of a shelf registration program of up to P30 billion in debt securities.

ACEN said the offering, which will be the company’s debut peso bond issue, would allow it to diversify its funding sources by tapping into the Philippine debt capital markets.

The bonds will complement the company’s dollar-denominated green bond issuances, bank lines, and project financing.

“Since our debt levels remain very manageable, we are taking this opportunity to issue peso green bonds to fund our renewable energy expansion in the country,” ACEN chief financial officer and treasurer Ma. Corazon Dizon said.

“At the same time, we are able to contribute to the development of the Philippine debt capital market and provide local investors a chance to invest in sustainable financing instruments,” Dizon said.

ACEN, the listed energy platform of the Ayala Group, intends to use proceeds of the bond issue to help fund its aggressive expansion in the local renewable energy sector.

These include projects such as the 283-megawatt direct current (MWdc) San Marcelino Solar farm in Zambales, the 42-MWdc expansion of the current 72-MWdc Arayat-Mexico Solar farm in Pampanga, and the 133-MWdc first phase of the Cagayan Solar farm in Lal-lo, Cagayan.

ACEN said the construction of the projects is in line with its aggressive renewables expansion in the country and across the region.

ACEN currently has about 3,400-MW of attributable renewable energy capacity.

It is working to become the largest listed renewables platform in Southeast Asia, with a target of building 5,000 MW of renewables by 2025.