ACEN secures fresh $150-M loan from foreign banks
ACEN Corp., the listed energy platform of the Ayala Group, continued to receive strong backing from foreign banks after it raised $150 million more to finance its aggressive expansion in the renewable energy market.
The company told the local bourse Friday it inked a five-year syndicated green term loan and revolving credit facility with international banks, just a few months after securing two loan agreements worth AU$225 million for its Australia projects.
The firm said a consortium of foreign banks pooled money for this new round of loan facility, namely Singapore branches of CTBC Bank Co., Ltd., Malayan Banking Berhad, Chang Hwa Commercial Bank, Ltd., Land Bank of Taiwan and Mega International Commercial Bank Co., Ltd.
ACEN said CTBC Bank (Philippines) and CTBC Bank Co. Ltd. served as the structuring bank and arranger, respectively.
Mike Albotra, CTBC Bank (Philippines) Corp. senior vice president of the institutional banking group, said the latest deal gained traction after ACEN marked its entry into the Taiwan market last year. Its unit, ACEN Renewables International Pte. Ltd., had partnered with a Singaporean firm to develop solar projects in Taiwan.
According to Sunny Sng, CTBC Singapore branch head of corporate banking, the loan facility was even “oversubscribed.” The amount was initially set at $100 million.
ACEN said the new capital would be used to grow its renewable energy portfolio across the Asia Pacific to 20 gigawatts by 2030 from the current 5 megawatts. ACEN may need $15 billion more to achieve this target.
With only six years to go, the company was still confident of meeting the goal, especially with the support of international banks, according to an official.
“The participation of different international banks in this transaction which includes a long-term revolving facility is a demonstration of the financial community’s strong confidence in ACEN’s leadership in the renewable energy sector and their full support for our growing pipeline outside our home market,” Cecile Cruzabra, ACEN group treasurer, said in the filing.
The company is eyeing to achieve 100-percent renewable energy in its generation portfolio by next year and become a net zero greenhouse gas emissions company by 2050. It also seeks to become the biggest listed renewables platform in Southeast Asia.
Aside from Australia, ACEN has projects in Vietnam, India, Indonesia, Laos and the US.
