ADB, ACEN Sign Php5.5B Sustainability-Linked Loan to Support Solar Energy Generation in the Philippines

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.

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.