AC Energy raises $300M via green bonds

AC Energy and Infrastructure Corp. successfully launched its $300 million green bond issue on strong demand from foreign investors.

The issue was oversubscribed by 4.33 times oversubscrived with demand reaching $1.3 billion

Formerly AC Energy and Infrastructure Corp., the energy platform of conglomerate Ayala Corp. offered US dollar-denominated senior perpetual fixed-for-life green bonds with a fixed coupon of 5.1% for life with no step-up, 30 basis points tighter than the initial guidance.

“We are very pleased to see the high level of investor confidence in AC Energy and the strong market response to our perpetual green bond, following our maiden green bond in 2019. We believe that this will power AC Energy in its pursuit to scale up renewable investments in the region as we continue the transition to a low carbon portfolio,” said AC Energy CEO and president Eric Francia.

Net proceeds from the offer will be used to fund the company’s ongoing tender offer for its 5.65% $400 million senior perpetual fixed-for-life notes callable in December 2022, and green energy projects.

The bond issuance represents the first Philippine fixed-for-life perpetual bond offering since November 2019 and is the first public green bond out of the Philippines this year.

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