General Announcement::ACEN pioneers energy transition financing to enable more renewables

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
13-Apr-2022 12:20:52
Status
New
Announcement Sub Title
ACEN pioneers energy transition financing to enable more renewables
Announcement Reference
SG220413OTHRT7RF
Submitted By (Co./ Ind. Name)
AC Energy Corporation / Irene S. Maranan
Designation
Head, Corporate Communications and Sustainability
Effective Date and Time of the event
11/04/2022 00:00:00
Description (Please provide a detailed description of the event in the box below)
April 11, 2022 - ACEN, the Ayala group's listed energy platform, successfully signed an Amended and Restated Omnibus Loan and Security Agreement for its wholly-owned subsidiary, South Luzon Thermal Energy Corporation (SLTEC) with Bank of Philippine Islands and Rizal Commercial Banking Corporation as lenders. The loan facility of up to Php13.7 billion is intended to (a) refinance SLTEC s outstanding Php9.8 billion loan facility (b) fund the partial redemption of capital in SLTEC held by ACEN, subject to regulatory approvals; and (c) finance other transaction-related expenses. ACEN, in turn, shall use the proceeds of the equity redemption to reinvest in renewable energy projects.

Together with the Ayala group, ACEN announced its commitment to net-zero greenhouse gas emissions by 2050 in November last year. This goal is supported by key milestones that will bring ACEN generation output to 100% renewable energy by 2025.

Through this mechanism, ACEN's coal-fired power plant with a capacity of 244 MW in Calaca, Batangas shall be decommissioned by 2040, 15 years ahead of the end of its technical life. This transaction shall serve as a pioneer energy transition financing in the country.

The concept adopts the principles of the Energy Transition Mechanism (ETM) being piloted by the Asian Development Bank (ADB) in South and Southeast Asia. ETM aims to use public, private, and philanthropic financing to provide low-cost capital to coal-fired power plants to accelerate their retirement and help jumpstart reliable and affordable clean energy. ADB announced an ETM partnership involving the Philippines and Indonesia at COP26 in Glasgow last year. ETM is also consistent with the Department of Finance's goal to retire coal-fired power plants and transition to clean energy.

BPI Capital Corporation is the Mandated Lead Arranger and Sole Bookrunner, while RCBC Capital Corporation is the Lead Arranger.

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About ACEN (Formerly AC Energy)

ACEN is the listed energy platform of the Ayala Group. The company has over 3,800 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 of renewables capacity by 2025. In October 2021, ACEN announced its commitment to achieve net-zero greenhouse gas emissions by 2050.

www.acen.com.ph

Attachments

PR - ACEN pioneers Energy Transition Financing vF.pdf
Total size =220K