23 January 2019 | Singapore — AC Energy Inc. (“AC Energy”), Ayala Corporation’s (PSE:AC) energy platform, successfully set the terms of its inaugural US dollar-denominated senior Green Bond issuance at an aggregate principal amount of US$225 million with a 5-year tenor and a coupon of 4.75% per annum, priced at 99.451 (the “Bonds”).
The Bonds will be issued by AC Energy Finance International Limited, a wholly-owned subsidiary of AC Energy, and will be guaranteed by AC Energy. It is a drawdown off a recently established US$1.0 billion Medium Term Note Programme and the Bonds will be listed on the SGX-ST.
The Bonds have received pre-issuance certification as Climate Bonds under the Climate Bonds Standard (“CBS”). The Climate Bonds Standard Board of the Climate Bonds Initiative (“CBI”) approved the certification of the Notes on 14 January 2019, and AC Energy’s issuance will be the first publicly syndicated CBI-certified US$ Green Bond in Southeast Asia. The CBS certification provides assurance that proceeds from any issuance of Notes will be used to finance projects and assets that are consistent with delivering a low-carbon and climate resilient economy. AC Energy’s Green Bond Framework sets out well-defined guidelines for use of proceeds for renewable energy projects, with comprehensive monitoring and reporting commitments.
“We are very pleased to see the success of our maiden Green Bond. This will enable AC Energy to scale up its renewable energy investments in the region,” said AC Energy Chairman Fernando Zobel de Ayala.
“We are very encouraged by the strong reception among bond investors within the current volatile environment. This reflects confidence in AC Energy’s capability to execute its plans and meet investor expectations,” said Cora Dizon, AC Energy Chief Finance Officer.
In 2018, AC Energy generated 2,800 GWh of attributable energy, of which 48% was from renewable sources. AC Energy’s 2025 goal is to reach 5GW of renewable energy capacity, with renewables contributing at least 50% of total energy output.
HSBC acted as Sole Global Coordinator; Bank of America Merrill Lynch (“BofAML”) acted as Sole Green Structuring Agent, and BofAML, CLSA and HSBC acted as Joint Bookrunners and Joint Lead Managers, with the participation of BDO Capital, BPI Capital Corp., and China Bank Capital as Domestic Managers.