IFC backs Philippine green bond issue with Vietnamese solar in mind

JGC Corporation Krong Pa mega-solar in Vietnam

February 12 (Renewables Now) - The International Finance Corp (IFC) has anchored the USD-300-million (EUR 266m), five-year green bond in the Philippines that was recently issued by the energy arm of Philippine group Ayala Corp (PSE:AC).

IFC said today it had committed to invest USD 75 million in the first-ever listed green bond issued by AC Energy Finance International Ltd, guaranteed by AC Energy. The finance firm, which is part of the World Bank Group, noted that this is the first Climate Bond-certified, infrastructure-focused green bond to be publicly listed in Southeast Asia.

Earlier this month it was announced that AC Energy had ended up raising USD 410 million from its inaugural green bond offering after deciding to issue a tranche of 10-year green bonds worth USD 110 million in addition to USD 300 million worth of five-year bonds. The Asian Development Bank (ADB) said it was an anchor investor in the 10-year tranche with USD 20 million.

AC Energy plans to use the proceeds to finance its plans for up to 5 GW of renewable energy projects in East Asia and Pacific to 2025. IFC noted that its subscription is dedicated to selected solar photovoltaic (PV) and wind projects in Vietnam and particularly its equity stake in solar project developer Gia Lai Electricity Joint Stock Company.

(USD 1.0 = EUR 0.886)

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