The International Finance Corporation (IFC) has announced that it has committed an investment of $75 million in the first-ever listed green bond issued and guaranteed by AC Energy, the power arm of Philippines based Ayala Corporation.
IFC’s investment anchored a $300 million green bond, attracting interest from international and Philippine institutional and bank investors.
According to IFC and AC Energy, this is the first climate bond certified infrastructure-focused green bond to be publicly listed in Southeast Asia. The five-year green bond is listed on the Singapore Exchange.
The proceeds from the AC Energy green bonds are expected to be used to finance the company’s plans to develop up to 5 GW of renewable energy projects in East Asia and Pacific to 2025, with IFC’s subscription dedicated to selected solar PV and wind projects in Vietnam.
“We are delighted to partner with a global player like IFC as we take a major step to grow our renewable energy investments. IFC’s anchor investment and extensive experience in green bonds were key in successfully mobilizing substantial international and Philippine investment in AC Energy’s maiden capital market offering,” said Eric T. Francia, AC Energy president and CEO.
Vivek Pathak, IFC director for East Asia and the Pacific, said, “This partnership, leveraging IFC’s extensive global experience in green bonds, demonstrates the tremendous potential of the green bond asset class as a tool for mobilizing international institutional capital into infrastructure assets.” He added, “We look forward to expanding our support of such issuances across Asia, advancing the integration of regional power and financial markets.”
AC Energy’s parent company, Ayala Corporation, is a strategic client of IFC in Asia and a regional and global leader in the corporate pursuit of the UN Sustainable Development Goals as a founding member of the UN Global Compact Network in the Philippines. The Ayala Corporation has businesses across the real estate, banking, water, sustainable energy, and telecommunications sectors.
This investment is in line with IFC’s goal to grow green capital markets, including infrastructure-targeted green bonds, essential for funding the region’s infrastructure needs.
Last week, the Asian Development Bank announced an investment of $20 million in AC Energy’s green bonds. In December 2018, ADB also announced that it would invest 5 billion Thai baht ($155 million) in one of Thailand’s largest private power producers, B.Grimm Power through 5-year and 7-year green bonds.