The proceeds will fund ACEN's solar projects, enabling the generation of at least 450 gigawatt-hours annually, power previously generated through divested coal plants.

A total 277,650 tons of carbon dioxide annually will be avoided by 2029.

The Asian Development Bank (ADB) and ACEN Corporation have signed a sustainability-linked loan of up to Php5.5 billion (about $100 million) to boost solar energy capacity in the Philippines and support the country's energy transition goals.

A sustainability-linked loan of up to Php5.5 billion from the Bank of the Philippine Islands (BPI), was also signed by ACEN, with ADB providing a partial credit guarantee covering up to 20% of the principal and interest amount. The guarantee allows BPI to leverage ADB's AAA credit rating, resulting in a larger facility for ACEN and at a lower margin.

'Asia and the Pacific accounts for more than half of the world's greenhouse gas emissions and supporting its energy transition from fossil fuel into clean renewable energy is key to ADB's mission as the region's climate bank,' said ADB Director General for Private Sector Operations Suzanne Gaboury. 'ACEN is a trailblazer in the Philippine market as the first power utility company to divest interests in coal power generation and channel funds into solar and wind power. ADB is proud to have facilitated ACEN's inaugural issuance of a sustainability-linked loan.'

The proceeds will fund ACEN's solar projects, enabling the generation of at least 450 gigawatt-hours annually, power previously generated through divested coal plants. A total 277,650 tons of carbon dioxide annually will be avoided by 2029. Sustainability-linked loans incentivize the achievement of sustainable performance goals, in return for a variable or lower interest rate. The loan has been certified through second-party opinion provider DNV.

ACEN manages a diversified portfolio of large-scale renewable power generation projects in the Australia, India, Indonesia, the Philippines, and Viet Nam. ACEN is a subsidiary of Ayala Corporation one of the most diversified conglomerates in the Philippines, with interests in real estate, banking, telecom, water, power, infrastructure, industrial technologies, health care, and education.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members-49 from the region.

Media Contact

Larkin, John Gerard

Principal Communications Specialist

+63 2 8632 6618

+63 999 999 6618

E-mail contact form

Paulino, Miguelito Maximo Magtira

Senior Communications Officer

+63 2 8632 6736

(C) 2023 Electronic News Publishing, source ENP Newswire