ACEN earmarks P3B to support Palauig solar park, battery projects
The Ayala group’s ACEN Corp. has committed an additional P3 billion to its wholly owned subsidiary Giga Ace 8 Inc. to finance the construction of its Palauig Solar 2 and battery energy storage projects.
In a disclosure on Friday, ACEN said it signed a subscription agreement for 300 million Redeemable Preferred Shares “A” in the project company at their par value of P10 each.
Loan to subsidiary
The funds will support the construction of the 300-megawatt-peak Palauig Solar 2 project and the 520-megawatt-hour Palauig 2 Battery Energy Storage System.
Giga Ace 8 is the special purpose vehicle currently constructing both projects.
Under the agreement, ACEN must make an initial payment of P2 billion upon signing. The remaining P1 billion will be payable in full or in tranches upon demand by Giga Ace 8.
Payment of the balance will depend on the subsidiary’s funding requirements and exigencies, subject to approval by its board of directors.
The preferred shares will be issued from an increase in Giga Ace 8’s authorized capital stock.
The closing of the transaction requires full payment of the subscription price and Securities and Exchange Commission approval of the capital increase.
The additional shares represent 31.5 percent of Giga Ace 8’s total outstanding shares, assuming regulatory approval of the capital increase.
The project company remains a wholly owned ACEN subsidiary.
ACEN’s board approved the transaction on March 9, 2026.
The company said proceeds from the latest infusion would replace the funding arrangement that was disclosed on Sept. 4.
Back then, ACEN said it was lending to Giga Ace 8 up to P3.24 billion for the Palauig 2 project. It is located in Barangays Salaza and Bulawen in Palauig, Zambales.
Aside from the Philippines, ACEN operates in Australia, Vietnam, Laos, Indonesia and India.
