ACEN Corp., the Ayala Group’s listed energy platform, said Thursday it signed an P11-billion sustainability-linked loan facility with the Asian Development Bank (ADB) and the Bank of the Philippine Islands (BPI).
ACEN said in a disclosure to the Philippine Stock Exchange the loan, which includes a partial credit guarantee by ADB, underscores the company’s integrated sustainability approach and commitment to renewable energy development.
It will finance ACEN’s solar projects, propelling ACEN further as a leader in the energy transition.
“This financing is not just a loan; it is a clear testament of our unwavering commitment to our sustainability ambitions as we set the stage for accelerated growth in the renewables sector. ACEN currently has about 4,500 MW of attributable capacity, and this loan is an instrumental step towards our ambitious target of reaching 20 GW by 2030,” ACEN president and chief executive Eric Francia said.
ACEN has been a driving force in the development of new renewable energy projects in its core market, the Philippines, and across the region, utilizing various capital-raising initiatives to strengthen the company’s balance sheet.
The company said the loan aligns with its aspiration to become the largest listed renewables platform in Southeast Asia and will contribute to the development of solar projects .
“ACEN’s maiden sustainability-linked loan exemplifies our strategic financing approach, one that places environmental, social, and governance (ESG) initiatives at the forefront. This loan aligns with our priorities and enables us to consistently invest in sustainable energy infrastructure towards our net zero transition goal,” ACEN chief finance officer Cora Dizon said.
ACEN treasurer Cecile Cruzabra said the partnership among ACEN ADB, and BPI represents more than just a financial collaboration but also a shared commitment to RE development and a joint mission to achieve net zero greenhouse gas emissions.
Meanwhile, ACEN announced its membership with the Powering Past Coal Alliance (PPCA), the first and only global coalition of national, sub-national governments and private businesses striving to transition from unabated coal power generation to cleaner, renewable energy sources.
The announcement came during the COP28 summit held in Dubai.
“It is an opportune time for ACEN to join PPCA. As ACEN continues to lead pioneering initiatives such as the world’s first market based Energy Transition Mechanism and the recently announced Transition Credit pilot, there is much benefit to connecting with the PPCA network to further these innovative transition initiatives,” said Francia.
ACEN implemented the world’s first market-based Energy Transition Mechanism in 2022, leading to the divestment of the coal plant in the Philippines. The bold move sets the stage for a transition to cleaner technology by 2040, a testament to ACEN’s commitment to renewable energy.