AYALA-LED AC Energy Philippines, Inc. would require up to 2 billion to surpass its 2025 goal of 5-gigawatt installed energy ability, which would also see the completion of its organizational transformation and restructuring, said its senior official on Thursday.
“We estimate that we will require about $1.8 [billion] to $2 billion in equity to help us realize that vision,” said Eric T. Francia, president and chief executive officer of the organization, in a virtual media conference.
“We’ve already lined up the sources of that capital requirement, that capital requirement, which is close to 2 billion,” he said.
Mr. Francia said that AC Energy Philippines—or ACEN to distinguish it from its parent corporation, AC Energy, Inc.—will become Ayalas’ integrated energy network.
ACEN also houses the Group’s local expenditure in thermal and green energy for ventures in Australia, India, and Vietnam and other areas of the country. Its father, AC Energy, will be AC Energy and Infrastructure Corp. (ACEIC). AC Energy actually owns around 81 per cent of ACEN.
“But that shareholding will move around in the next few years [because of the restructuring of the company that is taking place in ACEN,” said Mr. Francia.
Mr. Francia said that by the end of next year, the share of AC Energy will decline to about 65 per cent, with Singapore-based GIC Pte. Ltd. retains 17.5 per cent and the state controls 18 per cent. Last week the ACEN Board accepted the request of GIC affiliate Arran Investment Pte. Ltd. to spend about P20 billion with a 17.5 per cent shareholding.
“So, basically, we are five steps away from the completion of the restructuring,” said Mr. Francia.
The five moves will continue with the equity rights offering in the first quarter of next year, the GIC private placing of 4 billion shares by the end of the second quarter, a follow-up public offering on the stock exchange shortly afterwards the injection of foreign energy reserves and, eventually, the selling of secondary shares from ACEIC to GIC.
“At the end of all this, ACEN would have raised $500 million to $600 million in additional cash for growth capital to add to the $700 million in unsuitable cash or cash reserves to actually fuel the 2025 plan,” Mr. Francia stated.
The 2025 target is to reach 5,000 megawatts or 5 gigawatts of attributable power and to produce at least 50% of the electricity from renewable sources.