Week In South East Asia: AC Energy Aims to Raise US$400 Million; And More

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AC Energy Aims to Raise US$400 Million in 3.5 Year Fixed-for-Life Green Bonds

AC Energy Corporation announced that ACEN Finance Limited, the wholly-owned subsidiary, successfully set the terms of its U.S. dollar-denominated senior guaranteed undated fixed-for-life green bonds at an aggregate principal amount of US$400.0 million, with a fixed coupon of 4.0% for life with no step-up and no reset, priced at par. The final order book volume exceeded by US$2.0 billion said the press release. Pricing for the bonds was at 4.0%, which was 45 basis points tighter than the initial price guidance. The Bonds will be issued by ACEN Finance Limited under its US$1.5-billion medium-term note program. The bond will be listed on the Singapore Exchange Securities Trading platform (SGX-ST). The Philippine Securities and Exchange Commission (SEC) confirmed that the Bonds comply with the requirements under the ASEAN Green Bonds Circular and qualify as an ASEAN Green Bond Issuance.

JERA To Invest $1.58B In Philippine Energy Producer Aboitiz Power

JERA Co., Inc. (JERA) has decided to acquire approximately 27% of the outstanding shares of Aboitiz Power Corporation (Aboitiz Power), a major power utility in the Philippines, for approximately 1,580 MUSD (the Transaction) and has executed a share purchase agreement with Aboitiz Equity Ventures Inc. and Aboitiz & Company. Working in conjunction with Aboitiz Power, JERA hopes to significantly advance the expansion of clean and renewable energy in the country. Aboitiz Power aims to expand power generation capacity to 9.2 GW and achieve a 50:50 clean energy and thermal capacity mix by 2030 to meet the increasing demand for electricity in the future while promoting renewable energy in the Philippines. At the same time, JERA is working to eliminate CO2 emissions from its domestic and overseas businesses by 2050 under its “JERA Zero CO2 Emissions 2050” objective. By participating in the Aboitiz Power business, JERA will make a positive contribution towards the promotion of clean and renewable energy in the Philippines.

Leader Energy Acquires LYS Energy To Bolster Southeast Asia’s Clean Energy Transition

LYS Energy Group (LYS Energy), the leading Singapore home-grown Solar Independent Power Producer (IPP), is pleased to announce the signature of an agreement with Leader Energy, a Singaporean IPP wholly owned by HNG Capital Sdn. Bhd. of Malaysia, allowing for the acquisition of 100% of the shares of LYS Energy. KPMG in Singapore acted as the financial advisor to LYS Energy, a pan ASEAN renewable energy corporate power purchase agreement (PPA) platform, making possible one of the most important renewable energy acquisitions in Singapore. This agreement represents a significant step for LYS Energy to continue its expansion across the region, as the Group grows its solar power business in a disciplined, consistent, and purposeful way. As the adverse effects of climate change continue its race, so do unpredictability for commercial and industrial sectors.

Sembcorp Industries Launches Sustainability-Linked Bond (SLB) Raising S$675 Million

The successful launch in Singapore of a sustainability-linked bond (SLB), raising S$675 million for Pan-Asian energy and sustainable solutions provider Sembcorp Industries (Sembcorp), marks the latest phase in the transition to a net-zero future. Sembcorp, through its wholly-owned subsidiary Sembcorp Financial Services Pte. Ltd., priced its inaugural SLB, anchored by an investment of S$150 million from IFC. It also marks IFC’s first investment globally as an investor in an SLB, with the partnership between Sembcorp and IFC set to support more inclusive economic growth and private sector participation, while fostering sustainable business practices and significant employment opportunities. Sembcorp’s SLB is the first issuance by an energy company in Southeast Asia and the region’s largest such issuance to date. Unlike traditional green bonds, SLBs involve issuers pledging to improve their performance against tailor-made ESG (environmental, social, and governance) targets.

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