ACEN injecting P875 million to BCHC for RE site development

The company has set aside around P70 billion in capital expenditure this year to bankroll its growth and expansion.

MANILA, Philippines — Ayala-led ACEN Corp. is investing P875 million in subsidiary Buendia Christiana Holdings Corp. (BCHC) to secure new strategic sites for future renewable energy projects.

In a regulatory filing yesterday, ACEN said the transaction involves the subscription to an additional 875,000 common shares and 7.88 million redeemable preferred shares of BCHC at a price of P100 apiece.

The parties have signed a subscription agreement, equivalent to 15 percent of the subsidiary’s total outstanding shares.

The proceeds from the share subscription will be used by BCHC to acquire new parcels of land for the group’s various potential power projects, ACEN said.

The transaction is subject to regulatory approval of the proposed increase in BCHC’s authorized capital stock.

In March, ACEN announced plans to inject P660 million into BCHC by subscribing to 660,000 common shares and 5.94 million redeemable preferred shares at a price of P100 apiece.

ACEN’s board of directors approved the move in August 2020.

BCHC is a special-purpose vehicle that acquires and owns land for the ACEN Group’s development projects across the Philippines.

As the listed energy platform of the Ayala Group, ACEN aims to expand its attributable renewables capacity to 20 gigawatts (GW) by 2030 in hopes of becoming a key player in the Asia-Pacific region.

The company has set aside around P70 billion in capital expenditures this year to bankroll its growth and expansion.

Currently, ACEN has a global generation portfolio of about seven GW spanning operational, under-construction and committed projects.

Aside from the Philippines, it also has growing presence in Australia, Vietnam, India, Indonesia, Laos and the United States.