ACEN guarantees offshore unit’s $320-M loans

MANILA, Philippines  — Ayala-led ACEN Corp. has issued $320 million in corporate guarantees to support the loan payments of its subsidiary, ACEN Cayman.

In a stock exchange filing on Monday, ACEN, the listed energy platform of the Ayala group, said the guarantees were issued in favor of Philippine National Bank for $140 million and Rizal Commercial Banking Corp. for $180 million.

Corporate guarantees are issued when the guarantor, in this case ACEN, takes on debt payments if the debtor—ACEN Cayman—defaults on the loan.

ACEN Cayman, the company’s offshore investment holding firm, will use the loans to buy back the redeemable preferred shares held by AC Energy Finance International Ltd. (ACEFIL) in ACEN Cayman.

READ: ACEN renewables unit gets $100-M green loan

“The proceeds will in turn be used by ACEFIL to redeem its maturing green bonds,” ACEN said in its disclosure to the Philippine Stock Exchange.

RE portfolio

ACEN aims to grow its total portfolio from 4.4 gigawatts (GW) to 20 GW by the end of the decade in line with its net zero carbon emissions goal. Currently, its portfolio is 98 percent renewables.

Aside from the Philippines, its facilities can be found in Australia, Vietnam, Indonesia and India.

READ: ACEN 9-month revenue hits P6.6B, up by 59%

ACEN president and chief executive John Eric Francia previously said they would tap bilateral loans and issue preferred shares to fund the 15.6-GW incremental clean energy capacity requirement.

Late last year, ACEN secured an P11-billion sustainability-linked loan facility from Asian Development Bank and the Zobels’ Bank of the Philippine Islands to fund the development of various solar projects.

READ: ACEN raises P11B from sustainability-linked credit facility

It also got a $100-million green term loan facility from Japan-based MUFG Bank Ltd. meant to support its expansion plans, particularly in Australia, its largest international market. INQ