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

AC Energy Vietnam
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.

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