ACEN investing P4.1 billion into subsidiary

MANILA, Philippines — ACEN Corp. is making an additional investment of P4.1 billion into a wholly owned subsidiary for the construction of a solar power project in Palauig, Zambales

The Ayala Group’s listed energy platform said it signed an agreement with Giga Ace 8 Inc. for the subscription of 151.69 million shares to be issued out of the increase in authorized capital stock of the subsidiary.

The subscribed shares are composed of Common A, Redeemable Preferred A, Redeemable Preferred C shares for a total subscription price of P4.099 billion.

ACEN said the subscription will be used by Giga Ace 8 to fund the proposed 300-megawatt-peak (MWp)/237-megawatt alternating current (MWac) Palauig Solar 2 project. Giga Ace 8 is a subsidiary of ACEN, and is a special purpose vehicle for the company’s development projects.

The project will also include construction of a 1,200-MWac transmission line.

ACEN said the transaction closing was subject to the necessary regulatory approvals from the Security and Exchange Commission on the creation of the Common A Shares, RPS A, and RPS C, increase in authorized capital stock of Giga Ace 8, and full payment of the subscription price.

Partial payment of P1.03 billion of the subscription price was paid upon signing of the subscription agreement, while the balance will be payable upon demand of Giga Ace 8.

ACEN   has about 4,000 MW of attributable capacity in the Philippines, Vietnam, Indonesia, India and Australia, with a renewable share of 87 percent, which is among the highest in the region.

The company targets to grow its renewables capacity to 20 gigawatts (GW) by 2030 and it is committed to 100 percent renewables generation by 2025.

As part of its aggressive renewables push, ACEN has fully divested from its remaining coal plant under South Luzon Thermal Energy Corp. (SLTEC) through the world’s first energy transition mechanism or ETM.

The ETM will ultimately result in the early retirement of the SLTEC coal plant by 2040, or 15 years ahead of the end of its technical life.