ACEN Philippines RE portfolio

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This project finance facilities comprises a term loan of $357.9m (P20 billion) (provided by Bank of the Philippine Islands) and a sustainability-linked loan of $197.6m (P11 billion) (half provided by Bank of the Philippine Islands and half by Asian Development Bank), granted to ACEN, part of Ayala Group, to finance its various renewable energy projects in the Philippines. The Bank of the Philippines signed the facility agreements with ACEN, respectively on November 29, 2023 for $357.9m and on December 13, 2023 for $98.8m (half of the sustainability-linked loan). The Asian Development Bank provides a partial credit guarantee covering up to 20% of the principal and interest amount of the $197.6-m (P11-billion) sustainability-linked loan (equal to $39.54m on the principal) and extends half of it $98.8m (Php5.5billion). The total amount of the two loans is close to $555.6m. The proceeds will fund ACEN’s solar projects, enabling the generation of at least 450 gigawatt-hours annually, power previously generated through divested coal plants. A total 277,650 tons of carbon dioxide annually will be avoided by 2029. The sustainability-linked loan granted by the ADB has been certified through second-party opinion provider DNV. The loans will also contribute towards the company's objective of raising additional credit facility of up to P32 billion, announced via disclosure in March 2023. ACEN’s renewable energy projects are aligned with the Government of the Philippines’ target under the National Renewable Energy Program to increase the share of renewable energy in the country’s power generation mix from the current 22% to 35% by 2030. https://www.ijglobal.com/articles/177857/acen-inks-loan-for-philippines-re https://solarquarter.com/2023/12/06/landbank-approves-%E2%82%B120-billion-loan-to-acen-for-philippines-renewable-energy-expansion/ https://www.landbank.com/news/landbank-supports-acens-re-projects-with-p20-b-loan https://www.acenrenewables.com/2023/12/acen-partners-with-adb-bpi-raise-php11-billion-sustainability-linked-term-loan/ https://www.adb.org/news/adb-acen-sign-php55-billion-sustainability-linked-loan-support-solar-energy-generation https://www.adb.org/projects/56241-001/main