AC Energy Green Bond (IFC-40227)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • Vietnam
Geographic location 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
Completed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Feb 12, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
AC ENERGY, INC.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. 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, this amount is converted to USD ($) on the date of disclosure. 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, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Corporate Actor Documents
Media Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 9, 2024

Disclosed by Bank Feb 11, 2019

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed 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
Here you can find a list of individual development financial institutions that finance the project.

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 Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

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.    

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - AC Energy Holdings, Inc Client -
- - - - Ayala Corporation Parent Company -
- - - - BIM Group Contractor -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

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/

How it works

How it works