ACEN Corp. and subsidiary ACE Endevor Inc. signed Thursday an agreement with Greencore Power Solutions 3 Inc. and Citicore Solar Energy Corp. to extend P2.3 billion in financing for the second phase of the Arayat solar project.
ACEN said along with Endevor, it signed the agreement with Greencore as the borrower for the 43.68-megawatt solar power plant and associated facilities in Arayat and Mexico, Pampanga.
The first phase covering 72 MW of the project, which was energized in April, was also financed by the company through a separate omnibus agreement executed by the parties on Feb. 4, 2021.
The second phase will bring the total capacity of the Arayat project to 116 MW once completed. It will be operational by February 2023.
Under the agreement, ACEN as lender will extend a term loan facility to Greencore in the amount of P2.3 billion to finance the design, engineering, financing, construction, procurement and supply, manufacturing, commissioning, start-up, testing, delivery, ownership, operation and maintenance of the plant.
The loan will be secured by a real estate mortgage over the real assets of Greencore, a pledge over the shares of the Greencore and the cashflows of the project.
Greencore, the special purpose vehicle of the project and the borrower in the agreement, is owned by CSEC with 50 percent of the shares, while ACEN and Endevor hold 45 percent and 5 percent, respectively.
“The Arayat-Mexico solar farm is yet another example of how partners leveraging on their collective expertise, experience and determination can deliver a high-quality project safely and on time,” said ACEN chief development officer Jose Maria Zabaleta earlier.