ACEN investing P2 B in subsidiary

ACEN Corp., the listed energy platform of the Ayala Group, is investing P2 billion in a subsidiary to acquire more land for future energy projects in the country.

In a disclosure to the Philippine Stock Exchange yesterday, ACEN said it signed a subscription agreement with subsidiary Buendia Christiana Holdings Corp. (BCHC) to subscribe to a total of 20 million shares.

The shares to be acquired is made up of 3.015 million common shares and 16.985 million redeemable preferred shares at P100 apiece, for a total of P2 billion.

ACEN will initially pay P1 billion, while the balance will be settled upon the capital call of BCHC.

The transaction is subject to the necessary approval by the Securities and Exchange Commission (SEC) on the increase in authorized capital stock of BCHC from P342.5 million to P1.34 billion.

“The additional capital will be used by BCHC to purchase real property required for various potential power projects,” ACEN said.

BCHC is a subsidiary of ACEN, and is a special purpose vehicle, which will own land for the company’s development projects.

In the past couple of years, ACEN has been pouring in funds in BCHC to acquire potential sites for future projects.

The company invested P415 million and P600 million in 2021 and 2020, respectively.

ACEN aspires to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 5,000 MW of renewables capacity by 2025.

The company has over 3,000 megawatts (MW) of attributable capacity across Asia-Pacific, with 18,000 MW in its pipeline of renewables projects being developed organically and with its various partners across the region.

ACEN expects an estimated 500 MW of these projects to reach financial close within the first quarter of the year.