The Philippines was recently cited as a regional leader in sustainable finance in a report issued by the international non-profit Climate Bonds Initiative (CBI) in 2020. With more than US$980 million in green bonds outstanding, AC Energy’s parent, AC Energy & Infrastructure Corporation (ACEIC), takes its position as the country’s largest issuer of green bonds, with four tranches of green bonds outstanding ranging in size from US$ 75 million to US$ 400 million.
As of end 2020, 70% of the green bonds have been deployed to the company’s various renewable energy projects. In the Philippines, the bonds have funded two new greenfield solar projects in Alaminos, Laguna and Palauig, Zambales.
In 2019, ACEIC made its debut in the debt capital markets and raised US$410 million in Green Bonds, the first publicly syndicated US dollar Green Bonds in Southeast Asia which were CBI-certified, a sign of best practice in the market in terms of ESG commitment. The International Finance Corporation and the Asian Development Bank are anchor investors. The issuance has since been increased to US$470 million.
At the latter part of the year, ACEIC had another offering – the world’s first US dollar-denominated perpetual fixed-for-life green notes at an aggregate principal amount of US$400 million certified under the ASEAN Green Bonds Standard and successfully listed in the Singapore Exchange. Currently, US$213 million of the bonds remain outstanding.
Most recently, ACEIC successfully issued US dollar-denominated senior perpetual fixed-for-life (non-deferrable) green bonds at an aggregate principal amount of US$300 million as part of a liability management deal. This represents the first Philippine fixed-for-life perpetual bond offering since November 2019 and the first public green bond out of the Philippines in 2020.