IFC bullish on AC Energy’s growth
The International Finance Corp. yesterday said it was committed to back the growth of AC Energy overseas, as the World Bank Group’s investment arm looks at further opportunities related to green bonds.
The IFC has just anchored the Ayala group subsidiary’s maiden green bond, providing $75 million out of the total $300-million issue.
IFC’s placement, along with an initial batch of $225 million which was placed in five-year bonds, is listed on the Singapore Stock Exchange.
“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,” said Vivek Pathak, IFC director for East Asia and the Pacific.
“We look forward to expanding our support of such issuances across Asia, advancing the integration of regional power and financial markets,” Pathak said in a statement.
Proceeds from the AC Energy green bonds will be used to finance the company’s plans for up to 5 gigawatts of renewable energy projects in the region to 2025.
In particular, IFC’s subscription is dedicated to selected solar photovoltaic and wind projects in Vietnam.
According to IFC, its investment will support AC Energy’s strategy to transform the company into a regional player focused on renewable energy, beyond its home market in the Philippines.
AC Energy president and chief executive Eric T. Francia said earlier the company was fully committed to environmental responsibility, biodiversity protection, and greenhouse gas reduction by scaling up our renewable energy initiatives across Asia-Pacific region.
“AC Energy’s inaugural public placement of green bond opens the door to a wider investor base and enables our renewable energy investments,” Francia said. “It also crystallizes our commitment to sustainable growth.”
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