Fresh from the success of its maiden green bond issuance early this year, with the Asian Development Bank and the International Finance Corporation as anchor investors, Ayala Group’s rapidly expanding power generation unit, AC Energy, pushes forward to cement the company’s commitment towards renewable energy and sustainability.
After issuing the first Climate Bond Initiative-certified US dollar green bonds publicly listed in Southeast Asia in the amount of $410 M, AC Energy recently bagged a certification anew under the ASEAN Green Bond Standards.
“AC Energy’s inaugural green bond opens the door to a wider investor base and enables our renewable energy investments,” said AC Energy President and CEO Eric T. Francia. “With the ASEAN Green Bond label, we can further tap into green finance to support our sustainable regional growth, providing a firm assurance to investors that these projects will benefit a low-carbon and climate-resilient economy.”
AC Energy plans to deploy the funds for renewable energy expansion around the region, including the Philippines, Indonesia, and Vietnam.
Meanwhile, SEC Commissioner Ephyro Luis Amatong lauded the progress achieved by AC Energy in meeting the ASEAN Green Bond Standards. Since its launch in November 2017, there have been less than 20 issuances in the region carrying the ASEAN Green Bond label, with two of these coming from the Ayala group.
“The move to comply with ASEAN Green Bond Standards demonstrates the region’s increasing emphasis on sustainable financing,” Amatong said. “AC Energy helps make the country the “ideal destination” for sustainable investments given its plans to develop clean energy projects in accordance with environmental best practices.”
The ASEAN Green Bonds Standards is an initiative that facilitates ASEAN capital markets in tapping green finance to support sustainable regional growth and meet investor interest for green investments and is part of the ASEAN Capital Markets Forum’s broader efforts in developing green finance for the region. The ASEAN Green Bond Standards have been developed in collaboration with the International Capital Market Association (ICMA) with the Green Bond Principles (GBP) as its basis.
“We reaffirm our commitment towards strengthening our Environmental, Social, and Governance standards in managing our portfolio of assets,” confirms Francia. “We will scale up our renewable energy initiatives across the Asia Pacific.”