AC Energy to issue green deferrable dollar notes

MANILA, Philippines — AC Energy Inc., the power arm of the Ayala Group, plans to issue dollar-denominated senior green fixed deferrable notes in line with its $2-billion medium term note program.

In a disclosure to the Philippine Stock Exchange, the company said it has tapped a global syndicate of banks and financial institutions led by BPI Capital Corp. to arrange a series of fixed-income investor calls and a Regulation S drawdown of senior green fixed-for-life (non-deferrable) perpetual notes.

“The notes will be issued by AC Energy Finance International Ltd., a wholly owned subsidiary of AC Energy, and will be guaranteed by AC Energy,” the company said.

AC Energy Finance also announced a concurrent any-and-all tender offer of its $400 million senior fixed-for-life green undated notes and a capped tender offer of its existing $360 million senior unsecured green notes due 2024.

The tender offer will expire at 4 p.m. (London time) on Nov. 26.

In July, AC Energy topped up its senior green bonds with an issuance of $60 million via private placement to fund its renewable energy expansion in the Asia Pacific region.

The bonds have a term of five years and are due in 2024.

The issuance brought the company’s total green bond issuance to $70 million, consisting of $360 million due 2024 and $110 million due 2029.

AC Energy received earlier global recognition as Best New Green Bond Issuer from London-based International Finance, and from Hong Kong’s The Asset for Best Green Bond and Best Issuer for Sustainable Finance (Corporate) in the Philippines.

Additionally, the company’s perpetual green bond was awarded Best Corporate Bond in Asia Pacific by The Banker during its Deals of the Year Awards 2020.

AC Energy is one of the fastest growing energy companies with over $1 billion of invested and committed equity in renewable and thermal energy in the Philippines and around the region.

The company aims to exceed five gigawatts of attributable capacity and generate at least 50 percent of energy from renewables by 2025.