ACEN issues corporate guarantee on subsidiary’s loans

MANILA, Philippines — ACEN Corp., the listed energy platform of the Ayala Group, has issued corporate guarantee in support of loans amounting to $320 million of subsidiary ACEN Cayman.

As guarantor to ACEN Cayman, ACEN, in a stock exchange filing, said it executed parent company guarantees in favor of lenders Philippine National Bank for $140 million and Rizal Commercial Banking Corp. for $180 million.

ACEN Cayman was incorporated under Cayman Islands laws in 2016 as a holding company.

ACEN said the loan obtained by its subsidiary would be used to redeem the redeemable preferred shares held by AC Energy Finance International Ltd (ACEFIL) in ACEN Cayman.

The proceeds will in turn be used by ACEFIL to redeem its maturing green bonds.

ACEN aims to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 20 gigawatts (GW) of renewables capacity by 2030.

The company expects the geographic mix of its portfolio by the end of the decade to include eight GW of clean energy projects in the Philippines, five GW in Australia, three GW in Indonesia and other markets, as well as two GW each in Vietnam and India.

ACEN currently has about 4,500 megawatts of attributable capacity.

The company has also committed to achieving net zero by 2050 and 100 percent renewable generation by 2025.

In line with the company’s commitment to renewable energy, ACEN last year was inducted as a member of the Powering Past Coal Alliance, the first and only global coalition of national, sub-national governments, and private businesses striving to transition from unabated coal power generation to cleaner, renewable energy sources.

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