Phinma Energy sets P15 billion borrowings

MANILA, Philippines — Phinma Energy Corp., to be renamed AC Energy Philippines Inc., is eyeing to borrow up to P15 billion to fund investments.

In a disclosure to the Philippine Stock Exchange yesterday, the board of Phinma Energy approved the availment of term loan facilities for up to P15 billion.

The borrowing will be used “to fund new investments,” Phinma Energy president and chief executive officer Eric Francia said in a text message.

The company board also cleared the investment in a solar farm project in Alaminos, Laguna, and a diesel power project to be located in Pililla, Rizal.

Francia said AC Energy Philippines would be investing in the 120-megawatt (MW) Alaminos solar farm and 150-MW Pililia diesel power plant, which are both being developed by AC Energy DevCo Inc.

AC Energy DevCo is affiliated with Ayala Energy Holdings Inc., which took over Bronzeoak Philippines Inc.

 It owns solar projects in Negros — San Carlos Solar Energy, Negros Island Solar Energy, and Monte Solar Energy.

The company is targeting to complete the diesel power project by the second half of next year to help augment power supply and meet the peaking requirements in the Luzon grid.

By 2025, AC Energy Philippines plans to put up 2,000 MW of renewable energy (RE) capacity in line with its goal to become a leader in RE development in the country.

The company currently has 150 MW of RE capacity from Phinma Energy and parent AC Energy.

To be able to reach this goal, Francia said the company would invest as much as $2 billion based on a rule of a thumb of about $1 million per MW.

The Ayala Group acquired Phinma Energy from the Del Rosario family for P6.3 billion.

The deal, which was cleared by the Philippine Competition Commission (PCC) in April, increased AC Energy’s attributable generation capacity by 240 MW.

AC Energy, based on its equity interest in power generation businesses, owns approximately 1.6 gigawatts (GW) of generation capacity in operation and under construction.

Last year, AC Energy generated 2,800 GWH of energy, 48 percent of which was from renewable sources.