IFC invests $75m in green bond issued by Philippines’ AC Energy

AC Energy's solar plant in Montesol, Negros Oriental, Philippines. Photo from AC Energy's website.

International Finance Corporation (IFC), a member of the World Bank Group, committed an investment of $75 million in a green bond issued by AC Energy Finance International Limited and guaranteed by AC Energy, according to an official release.

IFC’s investment anchored a five-year, $300-million green bond listed on the Singapore Exchange. It is the first Climate Bond certified infrastructure-focused fund to be listed in Southeast Asia. ADB had earlier disclosed a $20-million investment in AC Energy’s climate bonds.

IFC said the investment was in line with its commitment to growing green capital markets, including infrastructure targeted green bonds, essential for funding the region’s massive infrastructure needs.

The proceeds from the AC Energy green bond issuance will be used to finance up to 5GW of renewable energy projects in East Asia and Pacific until 2025. IFC’s subscription is dedicated to selected solar PV and wind projects in Vietnam.

The commitment also builds on IFC’s investment in the power sector in Vietnam, particularly its equity stake in Gia Lai Electricity Joint Stock Company.

“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,” said Vivek Pathak, Director for East Asia and the Pacific at IFC.

AC Energy is owned by Ayala Corporation, and AC Energy Finance International Limited is a wholly owned subsidiary of AC Energy. Last year, the company invested more than $40 million in a joint venture to build solar plants in Vietnam that is expected to begin operations in June this year.

IFC has to date issued 133 green bonds for $8.8 billion in 16 currencies, including the Philippine Peso Mabuhay green bond and Indonesian Rupiah Komodo green bond.

Also Read:

IFC mulls $100m debt package for Vietnamese tourism property develope

IFC proposes to invest in Bangladeshi apparel-maker Epyllion Knit Wear

Philippines: Ayala’s AC Energy invests $30m in Australian power JV 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.