AC Energy’s green bond rated Aaa by PhilRatings
BY LENIE LECTURA – JULY 12, 2022
from Business Mirror
PHILIPPINE Rating Services Corp. (PhilRatings) has assigned an issue credit rating of PRS Aaa to the proposed P10-billion green bond issuance of AC Energy Corp. (ACEN).
The offering has received PRS Aaa, the highest possible rating awarded by PhilRatings to any issuance of debt securities. The bonds further diversify ACEN’s funding sources, complementing the company’s US dollar-denominated green bond issuances, bank lines, and project financing.
PhilRatings noted ACEN’s “extremely strong” financial capacity to undertake the planned green bond offering.
Also, PhilRatings assigned ACEN a stable outlook, which indicates that the rating is likely to be maintained or to remain unchanged in the next 12 months.
The assigned issue rating takes into account ACEN’s aggressive expansion of its power generation capacity throughout the region via partnerships with a focus on renewable energy; its conservative capital structure; the significant turnaround upon the acquisition by AC Energy and Infrastructure Corp. of a controlling stake in ACEN in 2019, with a strong pipeline of projects which will support improving profitability and cash flow generating ability moving forward; the strong support from its ultimate shareholder; and its well-experienced management.
“Since our debt levels remain very manageable, we are taking this opportunity to issue Peso green bonds to fund our renewable energy expansion in the country. At the same time, we are able to contribute to the development of the Philippine debt capital market and provide local investors a chance to invest in sustainable financing instruments,” ACEN Chief Financial Officer and Treasurer Ma. Corazon G. Dizon said.
Proceeds from the bonds will be used for the 283-MW San Marcelino Solar farm in Zambales, the 42-MWdexpansion of the current 72-MWdc Arayat-Mexico Solar farm in Pampanga, as well as the construction of the 133-MW first phase of the Cagayan Solar farm in Lal-lo, Cagayan.
The Arayat-Mexico Solar Farm is a joint venture with GreenCore Power Solutions 3 Inc., a wholly owned subsidiary of Citicore Solar Energy Corp., while the Cagayan Solar Farm is a project of Natures Renewable Energy Development Corp., a partnership among ACEN, ACE Endevor Inc., and Cleantech Renewable Energy 4 Corp. ACEN fully owns the San Marcelino Solar project.
The construction of the said projects is in line with ACEN’s aggressive renewables expansion in the Philippines and across the region. ACEN currently has about 3,400 MW of attributable renewable energy capacity and is working to build 5,000 MW of renewables by 2025, towards its goal of becoming the largest listed renewables platform in Southeast Asia.
