A World Bank Group member, IFC (International Finance Corporation) recently announced the commitment of USD 75 million investment in a green bond issued by AC Energy Finance International Limited & guaranteed by Ayala Corporation’s power division AC Energy.
According to sources familiar with the matter, IFC’s investment has secured a USD 300 million green bond, drawing the interest from several international & Philippine institutional as well as bank investors and would open up more capital & financing for renewable power projects across the Asia Pacific region.
As per a report by IFC, this is the first ever Climate Bond infrastructure-focused fund to be openly listed in Southeast Asia. The five-year USD 300 million green bond is listed on the Singapore Exchange. It has also been reported that ADB had previously disclosed a USD 20 million investment in AC Energy’s Climate Bonds.
Sources cite that the capital from the AC Energy green bonds will be availed for financing the company’s plans for developing 5 gigawatts (GW) of renewable energy projects in East Asia and Pacific by 2025, coupled with IFC’s commitment toward selected wind and solar PV projects in Vietnam. The investment is also likely to back AC Energy’s strategy to transform itself into a promising regional player focusing on renewable energy further than its domestic market in the Philippines.
If industry experts are to be believed, AC Energy’s plan to emerge as a major player banks on IFC’s investment in Vietnam’s power sector as well as its equity shares in Gia Lai Electricity Co., (Gia Lai Electricity Joint Stock Company) – the firm credited to develop the first operational solar PV projects in the country.
Eric T. Francia, AC Energy President and CEO, was quoted saying that the company is pleased to announce the partnership with IFC as it aims to take a major step forward in renewable energy investments. He further said that the IFC’s extensive experience in green bonds are the key that will successfully mobilize Philippine and international investment in maiden capital market offering of AC Energy.