ACEN invests add’l P859M in Pampanga solar farm

Renewable energy developer ACEN Corp. has subscribed to additional shares in Greencore Power Solutions 3 Inc., committing nearly P859 million to its solar power joint venture in Pampanga.

This is part of a transaction that will also partially settle the affiliate’s outstanding loan obligations to the listed energy firm.

In a disclosure on Wednesday, ACEN said it executed a subscription agreement covering new common and redeemable preferred shares of Greencore 3, where the Ayala-led company holds a 45-percent stake.

The transaction involves subscription to 2.41 million common A shares at P1 per share worth about P2.41 million. It also includes 41.97 million redeemable preferred shares A with a par value of P20.41 each, for an aggregate subscription amount of P856.71 million.

Proceeds from the share subscription will be used by Greencore 3 to partially settle its outstanding loan obligations to the company.

The loan was previously extended by ACEN to finance the development and construction of a photovoltaic solar power facility in Arayat and Mexico, Pampanga.

Greencore 3 is a joint venture between ACEN and Citicore Solar Energy Corp. and currently operates the 115.67-megawatt Arayat–Mexico solar power plant.

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The project forms part of ACEN’s broader renewable energy portfolio as it continues to expand its domestic solar footprint amid the country’s push to increase the share of clean energy in the power mix.

The company likewise noted that the total consideration represented less than 10 percent of its total assets.

The acquisition does not alter ACEN’s effective ownership in Greencore 3, which remains at 45 percent. However, it strengthens the balance sheet of the project while allowing ACEN to recover a portion of funds previously extended to support the solar project’s development.