Ayala unit to secure P300-M loan

BY LENIE LECTURA – DECEMBER 13, 2021
from Business Mirror

ACE Enexor, Inc., the oil and gas arm of the Ayala Group, will borrow a total of P300 million to partly finance its projects including the planned 1,100 megawatt (MW) combined cycle power plant in Batangas.

Of the P300 million, half will come from banks and the other half from AC Energy Corp. (ACEN).

ACE Enexor Board of Directors approved a short-term loan from ACEN of up to P150 million to fund the initial subscription by the former to shares in Batangas Clean Energy Inc. (BCEI).

BCEI is ACE Enexor’s joint venture company with Red Holdings B.V. for the development of an integrated liquified natural gas (LNG) terminal and a combined cycle natural gas and hydrogen power plant.

The board also authorized ACE Enexor to secure bank loans of up to P150 million to be guaranteed by ACEN subject to the payment of a guarantee fee.

ACE Enexor disclosed that it has appointed former SPEX (Shell Philippines Exploration B.V.) managing director Rolando Paulino as the company’s new president effective January 1, 2022. He will replace Raymundo A. Reyes, Jr., who, in turn, will be the company’s general manager effective January 1 next year.

Last month, an investment agreement was signed among ACE Enexor, Buendia Christiana Holdings Corp. (BCHC), US-based Red Holdings B.V., Gen X Energy L.P., and Batangas Clean Energy (BCE).

Red Holdings is a wholly-owned subsidiary of Gen X Energy, which, in turn, is a portfolio company of Blackstone Inc., the world’s largest alternative asset manager.

BCHC is an ACEN’s special purpose vehicle that will own the land for its development projects.

Under the deal, BCE will be the special purpose vehicle company where ACE Enexor and Gen X will each own a 50 percent interest in the power project, which will use natural gas and/or green hydrogen as its fuel to provide firm to power the grid to meet the country’s growing energy demand.

“The transaction will potentially add 1,100MW of natural gas and/or green hydrogen power to the Company’s power generation portfolio,” said ACE Enexor, adding that the arrangements on management and operations will be finalized upon the execution of the shareholders agreement on closing.

The investment deal also involves ACE Enexor’s subscription of 150,002 BCE shares for P150,219,040.

BCE shall file an application for the increase in its authorized capital stock with the Securities and Exchange Commission.