General Announcement::ACEN approves the final tranche of its energy transition financing

Issuer & Securities

Issuer/ Manager
ACEN FINANCE LIMITED
Securities
ACEN FIN US$400M4%N - XS2382032956 - ZDJB
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
26-Jul-2022 18:22:07
Status
New
Announcement Sub Title
ACEN approves the final tranche of its energy transition financing
Announcement Reference
SG220726OTHR2KQ4
Submitted By (Co./ Ind. Name)
ACEN CORPORATION / Irene S. Maranan
Designation
Head, Corporate Communications and Sustainability
Description (Please provide a detailed description of the event in the box below)
* Financial commitments secured for ~ 3.7 billion worth of shares in SLTEC
* Solidifies the path towards the transition of the company's 244 MW coal plant to cleaner technology by 2040 -- 15 years earlier than the end of its technical life
* The first energy transition mechanism in the Philippines that will enable new renewable energy investments

July 26, 2022 - ACEN, the Ayala Group's listed energy platform, approved the divestment of all its shares in its wholly-owned subsidiary, South Luzon Thermal Energy Corporation ("SLTEC"), through energy transition financing. The 244 MW coal plant in Calaca, Batangas, is the only coal plant under ACEN's portfolio. Subject to regulatory approval, the shares will be acquired by ETM Philippines Holdings, Inc. ("EPHI") and The Insular Life Assurance Company, Ltd. ("InLife") for an aggregate value of 3.7 billion. ACEN will use the proceeds from the divestment to invest in more renewable energy projects.

EPHI is a special purpose vehicle that allows financial investors to invest in energy transition by accelerating the retirement of coal-fired power plants, and to fund the development of new clean energy technologies. ACEN approved the provision of bridge financing to EPHI to facilitate its investment in SLTEC while providing prospective financial investors a vehicle to participate in energy transition.

This transaction shall serve as a pioneer energy transition financing in the country. It takes off from the principles of the Energy Transition Mechanism (ETM) piloted by the Asian Development Bank (ADB), which aims to leverage a market-based approach to accelerate the transition from fossil fuels to clean energy.

BPI Capital and CLSA are Joint Lead Arrangers for this transaction.

Together with Ayala Corporation, ACEN announced last November its commitment to Net Zero greenhouse gas emissions by 2050. Through this energy transition mechanism, SLTEC s coal power plant will be decommissioned by 2040, 15 years ahead of the end of its technical life and transitioned into cleaner technology.

BPI Capital and AlphaPrimus Advisors, Inc. acted as Joint Financial Advisors for this transaction.

Related news:
https://www.acenrenewables.com/2022/04/acen-pioneers-energy-transition-financing-to-enable-more-renewables/

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About ACEN (Formerly AC Energy)

ACEN is the listed energy platform of the Ayala Group. It has ~3,900 MW of attributable capacity in the Philippines, Vietnam, Indonesia, India, and Australia. The company's renewable share of capacity is at 87%, among the highest in the region.

ACEN's aspiration is to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 5,000 MW in renewables capacity by 2025. In October 2021, ACEN announced its commitment to achieve Net Zero greenhouse gas emissions by 2050.

www.acenrenewables.com


For inquiries and more information, please contact:

Irene Maranan
Head - Corporate Communications and Sustainability
Email: irene.maranan@acenrenewables.com



DISCLAIMER: This disclosure may contain forward-looking statements that are subject to risk factors and opportunities that may affect ACEN's plans to complete the transaction/s subject of this disclosure. Each forward-looking statement is made only as of the date of this disclosure. Outcomes of the subject transaction may differ materially from those expressed in the forward-looking statements included in this disclosure.

Attachments

PR_ACEN approves the final tranche of its energy transition financing_vF .pdf
Total size =216K