AC Energy and Utilities Corp. earned $300 million from its green bond issue, said its parent company Ayala Corp. in its regulatory filing on Friday, representing the country’s first fixed-for-life perpetual bond sale in around a year.
“We are really happy to see a high degree of consumer trust in AC Energy and a positive market reaction to our perpetual green bond following our first green bond in 2019,” said AC Energy CEO and President Eric T. Francia in a statement.
Green bonds were priced at 5.1 per cent, about 30 basis points tighter than the original pricing guidance, AC Energy stated, adding that the final book order value was more than $1.3 billion, nearly 4.33 times greater than the starting issue amount.
“We agree that this would improve AC Energy’s efforts to ramp up renewable investments in the area while we begin the move to a low-carbon portfolio,” said France.
Ayala Corp. said the green bonds of its renewable platform, AC Energy, became the first public green bonds out of the Philippines in 2020. They were provided by the wholly-owned subsidiary of AC Energy Finance International Ltd. under its two-billion medium-term note programme.
The bonds were accredited as ASEAN Green Bonds by the Securities and Exchange Commission on Nov. 18.
The net proceeds of the problem will be used to fund AC Energy’s pending auction for its 5,65 per cent, $400 million senior perpetual notes due in December 2022. Part of the proceeds can be used to finance the renewable energy initiatives of the organization.
BPI Capital Corp. was the main global organizer of the deal and the joint managing director and joint bookrunner with Credit Suisse (Hong Kong) Ltd., Hong Kong and Shanghai Banking Corp. Ltd., UBS AG Singapore Division.
China Bank Capital Corp., First Metro Investment Corp. and RCBC Capital Corp. participated as domestic lead managers.