SEC approves ACEN’s P50-B preferred shares shelf registration

MANILA  -ACEN Corp, the renewable energy arm of conglomerate Ayala Corp., has secured the approval of the Securities and Exchange Commission for its long-term registration of P50 billion in preferred shares, with the first offer set to be launched as early as next month.

The so-called shelf registration was cleared during a Commission En Banc meeting on July 27, the corporate regulator said in a statement on Friday. This covered the planned Series A and Series B “green” preferred shares that will be issued over a three-year period.

Holders of preferred shares are given priority rights in dividend payments and during events of corporate liquidation.

The SEC said ACEN planned to sell up to P25 billion of the securities for the first tranche.

“The preferred shares will be offered to the public from Aug 11 to 23 in time for listing on the Philippine Stock Exchange on Sept 1, according to the latest timetable submitted to the SEC,” the corporate regulator said.

This consists of a base offer worth P12.5 billion and an option to double the size to P25 billion in case of excess demand.

Meanwhile, ACEN could net up to P24.83 billion assuming the full exercise of the overallotment option.

“Proceeds will be used for the refinancing of short-term loans for eligible green projects, the company’s solar projects in Pangasinan, Zambales, and Cagayan, as well as wind project in Ilocos Norte,” the SEC said.

READ: ACEN to build P2-B Pangasinan solar plant

READ: ACEN raises stake in Cagayan solar farm

John Eric Francia, president and chief executive of ACEN, earlier said a combination of equity and debt fundraising will be utilized to bankroll the expansion of their clean power portfolio.

The company earlier announced that capital expenditures this year would reach around P70 billion.

READ: ACEN to spend P70B this year to support clean energy ambition

Meanwhile, the regulator said ACEN’s upcoming preferred shares will be traded under the symbol “ACENA” for the Series A tranche and “ACENB” for the Series B tranche.

ACEN hired BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Corp. as deal arrangers for the preferred share sale.