Manila, Philippines, February 12, 2019—IFC,
a member of the World Bank Group, committed an investment of $75 million
in the first-ever listed green bond issued by AC Energy Finance International
Limited and guaranteed by AC Energy, the power arm of Ayala Corporation.
IFC’s investment anchored a $300 million green bond, attracting
interest from international and Philippine institutional and bank investors
and opening up more financing for renewable energy projects in the Asia
This is the first Climate Bond certified
infrastructure-focused green bond to be publicly listed in Southeast Asia.
The five-year green bond is listed on the Singapore Exchange.
The proceeds from the AC Energy green bonds
will be used to finance the company’s plans for up to 5GW of renewable
energy projects in East Asia and Pacific to 2025, with IFC’s subscription
dedicated to selected solar PV and wind projects in Vietnam. This builds
on IFC’s investment in the power sector in Vietnam, particularly its equity
stake in Gia Lai Electricity Joint Stock Company, the developer of the
first operational utility-scale solar PV projects in the country.
The investment will also support AC Energy’s
strategy to transform the company into a regional player focused on renewable
energy, beyond its home market in the Philippines.
“We are delighted to partner with
a global player like IFC as we take a major step to grow our renewable
energy investments. IFC’s anchor investment and extensive experience in
green bonds were key in successfully mobilizing substantial international
and Philippine investment in AC Energy’s maiden capital market offering,”
said Eric T. Francia, AC Energy President and CEO.
AC Energy’s parent company, Ayala Corporation,
is a strategic client of IFC in Asia and a regional and global leader in
the corporate pursuit of the UN Sustainable Development Goals as a founding
member of the UN Global Compact Network in the Philippines.
Vivek Pathak, IFC Director for East Asia
and the Pacific, said: “This partnership, leveraging IFC’s extensive
global experience in green bonds, demonstrates the tremendous potential
of the green bond asset class as a tool for mobilizing international institutional
capital into infrastructure assets.” He added, “We look forward to expanding
our support of such issuances across Asia, advancing the integration of
regional power and financial markets.”
The investment is in line with IFC’s commitment
to grow green capital markets, including infrastructure-targeted green
bonds, essential for funding the region’s massive infrastructure needs.
IFC has helped catalyze the green bond market since 2010 and to date has
issued 133 green bonds for $8.8 billion in 16 currencies including the
Philippine Peso Mabuhay green bond and Indonesian Rupiah Komodo green bond.
IFC also helps financial intermediaries issue their own green bonds, as
an anchor investor, such as in the Philippines’ BDO Unibank and China
Bank, Thailand’s TMB Bank and Indonesia’s Bank OCBC NISP.
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities in the toughest areas of the world.
In fiscal year 2018, we delivered more than $23 billion in long-term financing
for developing countries, leveraging the power of the private sector to
end extreme poverty and boost shared prosperity. For more information,