ACEN Corp., the listed energy arm of the Ayala Group, expressed confidence on strong institutional and individual investor take-up of its P25-billion preferred shares issuance, company executives said Monday.
“We are greatly encouraged by the interest shown by both institutional and individual investors in this offering, even amidst tight financial conditions,” ACEN chief finance officer Cora Dizon said in a disclosure to the Philippine Stock Exchange Monday.
“It is an honor for ACEN to pioneer the issuance of the first ever peso-denominated fixed-for-life equity instrument in the country, making a significant mark in the financial market. This underlines our determination to blaze new trails in the financial sector,” Dizon said.
ACEN is offering up to 25 million preferred shares as the first tranche of the company’s three-year shelf registration of up to 50 million preferred shares.
The first tranche consists of 12.5 million perpetual, cumulative, non-voting, non-participating, non-convertible, redeemable and re-issuable Philippine peso-denominated preferred shares with an oversubscription option of another 12.5 million preferred shares at an offer price of 1,000 apiece.
It will be offered in two series for a total offer size of up to P25 billion. The offer period started on Aug. 11 and will run until Aug. 23, 2023.
“This issuance further strengthens ACEN’s balance sheet and will help the company attain its 2030 aspiration of achieving 20 gigawatts of renewables. ACEN is currently building around 1,100 MW of renewable energy plants in the Philippines, and more projects are expected to be added in the coming years. This financing initiative will enable ACEN to continue its aggressive renewables expansion,” said ACEN president and chief executive Eric Francia.
The Series A preferred shares will bear an initial dividend rate of 7.1330 percent per annum, with a dividend rate re-setting on the 5th anniversary of the issue date.
The Series B preferred shares will bear a fixed dividend rate of 8.0 percent per annum and are not subject to any dividend rate re-setting.
The Series B preferred shares, once issued, will be the first Philippine peso-denominated fixed-for-life equity instrument offered and listed on Main Board of the PSE.
BDO Capital & Investment Corp., BPI Capital Corp. and China Bank Capital Corp. are the joint issue managers and, together with PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp., are the joint lead underwriters and bookrunners for the offer.