ADB, IFC snap up Ayala unit’s green bonds

Two of the world’s largest development financing institutions have invested a combined $95 million in pioneering green bonds issued by AC Energy, the energy platform of conglomerate Ayala Corp.

These supported AC Energy’s fresh bond float worth $410 million, the first Climate Bond-certified and publicly listed US dollar green bonds carved out of Southeast Asia.

The World Bank’s private sector financing arm International Finance Corp. (IFC) and the Asian Development Bank invested in the green bonds issued through AC Energy’s subsidiary, AC Energy Finance International Ltd.

IFC provided an anchor investment of $75 million to complete the public placement of AC Energy International’s five-year green bonds, which reached $300 million.

The additional $75 million in five-year bonds with a coupon of 4.75 percent will be listed on the Singapore Stock Exchange (SGX-ST).

AC Energy also completed a separate $110-million private placement of 10-year bonds via ADB’s investment worth $20 million. The bonds, which will yield 5.25 percent, will also be listed on SGX-ST.

IFC director for East Asia and the Pacific Vivek Pathak said the support “demonstrates the excellent potential of the green bond asset class as a tool for mobilizing international institutional capital into infrastructure assets.”

Green bonds are used to raise funds for projects with clear environmental benefits. —DORIS DUMLAO-ABADILLA