AC Energy lends P1B to Solar Philippines affiliate for project sites
AYALA-LED AC Energy Corp. is lending up to P1 billion to an affiliate of Solar Philippines Power Project Holdings, Inc. to fund the acquisition of sites for solar power projects.
The listed energy platform told the stock exchange on Monday that it had signed on June 25 an omnibus loan and security agreement with borrower Provincia Investments Corp. and Solar Philippines, which acts as sponsor.
Under the agreement, the term loan facility will be secured by a real estate mortgage over Provincia Investments’ and third-party mortgagors’ title to, or rights and interests over, real assets in favor of AC Energy.
It also covers a mortgage and pledge over the shareholding of Solar Philippines in one of its fully owned subsidiaries.
The agreement comes after AC Energy disclosed on Jan. 25 that it had signed preliminary binding agreements with Solar Philippines and Provincia Investments for potential joint ventures in developing solar power projects in the Philippines.
Also in January, AC Energy said that it had forged a deal to acquire 99% of the primary and secondary shares of Solar Philippines’ subsidiary Solar Philippines Central Luzon Corp. (SPCLC) for P619,000.
The transaction will allow AC Energy to earn “a stable dividend income” from the operations of the solar power project under SPCLC, a special purpose vehicle under the holding firm founded by Leandro L. Leviste.
AC Energy hopes to become the largest listed renewable energy platform in Southeast Asia as it targets to reach a net attributable capacity of 5,000 MW by 2025. The company firm has around 1,200 of attributable capacity in the Philippines, with renewables making up more than half.
Shares of AC Energy climbed by 24 centavos or 2.93% to finish at P8.42 apiece on Tuesday.