AC Energy Corp. (ACEN), the energy platform of Ayala Corp., would embark on renewable energy (RE) projects worth $3 billion as part of its goal of hitting 5,000 megawatts (MW) of RE capacity by 2025 or even earlier.
The amount is based on the investment rule of thumb, which is $1 billion per MW. The $3-billion project involves 3,100MW of RE capacity, according to ACEN President Eric Francia.
“The gap is around 3,000MW because now we are at 1,900MW. So, the 3,100MW is worth around $3 billion in project cost. The equity for that is around $1 billion,” said Francia during a virtual press briefing held Monday.
The RE projects are mostly solar and wind “because that’s what opportunities typically present.”
Francia said funding is not a problem because the company is awash with cash. “We have more than enough to get us to 5,000MW. These are exciting times. We have significant cash on our balance sheet.”
He said 1,000MW of RE projects would be constructed within the next six to 12 months, equally split between here and abroad. “We estimate 500MW to come from the Philippines and 500MW abroad in the next 6 to 12 months.”
He cited the 75MW solar power project in Arayat and Mexico, Pampanga as part of the 500MW RE projects scheduled for commercial operation in the first quarter of 2022.
“This is in time for summer next year. We do expect a good number of additional projects for the balance of the year,” he said, adding that the company might hit its 5,000MW goal sooner than expected.
Meanwhile, ACEN has completed its P13-billion follow-on offering, the latest of its capital raising activities for the year to fund its 2025 target.
A total of 2.01 billion common shares, consisting of consisting of 1.58 billion common shares for the primary offer, 330.248 million common shares for the secondary offer and an over-subscription option of up to 100 million common shares, were sold. The shares were priced at P6.50 apiece.
The primary shares were listed on the Philippine Stock Exchange last May 14. This brings ACEN’s total outstanding shares to 21.54 billion, with a market capitalization of over P150 billion.
About 80 percent of the base offer shares were offered to qualified institutional buyers. The remaining 20 percent was placed out to eligible trading participants of the PSE.
“We are delighted with the results of the follow-on-offering—a strong vote of confidence in AC Energy’s strategy to rapidly expand its renewables business across the region,” said Fernando Zobel de Ayala, AC Energy Chairman. “With a much stronger balance sheet, AC Energy is in an excellent position to roll out the much needed investments in renewable projects and help accelerate the green-led recovery.”
Earlier, the company raised P27.5 billion of fresh capital this year, consisting of the recently concluded P5.4-billion stock rights offering last January, the P11.9-billion private placement to GIC affiliate Arran Investment last March, and the P10.3-billion raised from primary shares in the follow-on offering.
BPI Capital Corp. is the sole global coordinator, underwriter and joint bookrunner of the follow-on offering. CLSA Limited and UBS AG Singapore Branch are the international joint bookrunners.
ACEN booked a net income of P829 million in the first quarter, up 54 percent year-on-year, reflecting the strong performance of the company despite the pandemic. Attributable output grew 26 percent from additional operating capacity acquired in the previous year.
“We are very pleased with ACEN’s strong first quarter performance, which was driven by value accretive acquisitions and improved operating margins,” said Francia. “We expect the growth momentum to continue with our aggressive and sustained expansion in the renewables space.”
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