HSBC lends P2.7B for ACEN’s projects in Australia

The renewable energy unit of Ayala-led ACEN Corp. will get a 75 million Australian dollar (P2.74-billion) green term loan to fund its renewable energy projects in Australia, its biggest international market.

In a stock exchange disclosure on Wednesday, ACEN said its subsidiary, ACEN Renewables International Pte. Ltd. (ACRI) had signed the loan agreement with British banking giant HSBC Ltd.

“The green term loan of ACRI is a significant stepping stone in our funding journey—supporting our expansion plans in Australia, as well as helping manage our foreign currency risk in AUD,” said Cecile Cruzabra, ACEN treasurer.

ACEN noted that the loan would mainly fund the development and operations of the 521-megawatt (MW) New England and the 400-MW Stubbo solar projects in Australia.

The first phase of the New England project was launched earlier this year with a capacity of 400 MW, while construction for the Stubbo project began in late 2022.ACEN described Australia as its largest market outside the Philippines and a “critical player” in its goal of expanding its renewable energy capacity from the current 4.4 gigawatts (GW) to 20 GW by 2030.

ACEN Australia currently has over 1 GW of capacity in construction and in operation, while an additional 8 GW is under development.

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Apart from the Philippines and Australia, ACEN also has businesses in Vietnam, Indonesia and India.

At the same time, ACEN said its international unit, ACEN International Inc., signed a P7-billion term loan facility with Rizal Commercial Banking Corp. to finance renewable energy projects through its subsidiaries and joint ventures. INQ