Ayala unit lists US$300m perpetual green bond on SGX

AC ENERGY and Infrastructure Corp, the energy platform of Philippines' conglomerate Ayala Corp, has listed US$300 million in perpetual green bonds on the Singapore Exchange (SGX), marking the first public green bond out of the Philippines this year.

The perps carry a fixed coupon of 5.1 per cent for life, with no step-up and no reset, and are priced at par, AC Energy said in Nov 26 statement that was released on the SGX on Tuesday. The offering is also the first Philippine fixed-for-life perpetual bond offering since November 2019, it added.

It is part of AC Energy's US$2 billion medium-term note programme, and is guaranteed by the firm. They were certified as Asean Green Bonds by the Philippine Securities and Exchange Commission on Nov 18.

The final order book volume exceeded US$1.3 billion, making it 4.33 times oversubscribed, given a "wide range of high-quality investors", AC Energy said. The 5.1 per cent coupon is 30 basis points tighter than its initial price guidance.

"We are very pleased to see the high level of investor confidence in AC Energy and the strong market response to our perpetual green bond, following our maiden green bond in 2019. We believe that this will power AC Energy in its pursuit to scale up renewable investments in the region as we continue the transition to a low-carbon portfolio," said AC Energy chief executive and President Eric Francia.

Proceeds from the offering will be used for AC Energy's ongoing tender offer for its US$400 million worth of 5.65 per cent senior perpetual notes callable in December 2022, as well as for eligible green-energy projects.

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