AC Energy Green Bond (IFC-40227)

Countries
  • Vietnam
Where the impacts of the investment may be experienced.
Specific Location
Ninh Thuan province, Vietnam
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
B
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Borrower
AC ENERGY, INC.
The holder of the loan, grant, or other investment.
Sectors
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Advisory Services, Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 75.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Corporate Actor Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 13, 2019

Disclosed by Bank Feb 11, 2019


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Project Description

AC Energy, Inc. (“ACE” or the “Company”) is a wholly-owned subsidiary of Ayala Corporation (“Ayala”) in the Philippines that engages in power generation. Since 2011, ACE has invested around US$1 billion in the power sector in the Philippines, Indonesia and, more recently, in Vietnam and Australia. It currently co-owns ~4GW (~1.8GW pro-rata share) of generation capacity in operation or under construction, including thermal, wind and solar assets in the Philippines, wind and geothermal assets in Indonesia, as well as solar assets in Vietnam. 

ACE will guarantee the Green Bond. The proceeds of the Green Bond will be used as ACE’s equity and development capital for its renewable energy (“RE”) projects in the Philippines, Indonesia, Vietnam, Australia, and in other countries where ACE may operate. IFC’s subscription to the Green Bond would be dedicated to RE projects in Vietnam only.

 Some of the sub-projects preliminarily identified for potential use of IFC proceeds include the five projects listed below, which are being developed with local partners viz. BIM Energy and The Blue Circle (TBC):

Sub-Project

Type

MW

Stage

Area

Location

BIM Energy

Solar

30

Under construction

34.8 ha

Phuoc Minh, Ninh Phuoc District, Ninh Thuan Province, Vietnam

11°26'28.13N 108°53'59.45E

BIM Renewable

Solar

50

Under construction

~65 ha

Phuoc Minh, Ninh Phuoc District, Ninh Thuan Province, Vietnam 

11°23'50.89N 108°52'53.38E

BIM Wind

Wind

50-200

Under Planning

TBD

Phuoc Minh, Ninh Phuoc District, Ninh Thuan Province, Vietnam 

11°25'0.56N 108°52'47.35E

TBC Dai Phong

Wind

40

Under Planning

18.0 ha

Thien Nghiep, Thanh pho Phan Thiet, Binh Thuan Province, Vietnam

10°58'56.21N, 108°17'43.37E

TBC Ba Thap

Wind

30

Under Planning

4.3 ha

Bac Phong, Thuan Bac District, Ninh Thuan Province, Vietnam

11°40'16.16N, 109° 2'17.73E

Additional renewable energy projects may be developed by ACE and may be considered for use of IFC proceeds, provided that E&S impacts are limited. Only the projects that will utilize IFC proceeds are referred to as the “sub-project/s.”  

Investment Description
  • International Finance Corporation (IFC)

Total issuance amount of the Green Bond is US$300 million in the 5-year tenor tranche. IFC’s investment is US$75 million of the 5-year tranche.

Private Actors

The Issuer is AC Energy Finance International Limited, a Cayman Islands wholly-owned subsidiary of ACE. ACE, in turn, is a wholly-owned subsidiary of Ayala, a listed company established and organized under the laws of the Philippines. Ayala is listed on the Philippines Stock Exchange. Its largest shareholder is Mermac Inc. (47.0%). Mitsubishi Corporation is its second-largest shareholder (6.7%). The rest is widely held by other investors with less than 5% ownership each.    

Contact Information

1/ The Project Contact

AC Energy, Inc. 
Louis Baui 
Vice President, Finance & Accounting 
+632 908 3032 
baui.lp@acenergy.com.ph 
4/F 6750 Building, Ayala Avenue, Makati City, Metro Manila, Philippines 
https://www.acenergy.com.ph

2/ The IFC Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

3/ Local Access for Project Documentation

Louis Baui

Address: 4/F 6750 Building, Ayala Avenue, Makati City, Metro Manila, Philippines

Telephone no.: +632 908 3032

Fax: +632 751 6511

Email: baui.lp@acenergy.com.ph     

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/