AYALA-led AC Energy Philippines, Inc. (ACEN) has approved a total of P10.81 billion in funding for a solar energy project and a wind farm, the firm told the local bourse on Thursday.
Its board of directors greenlit the financing of a solar plant project in Arayat and Mexico, Pampanga, through a secured loan, which would cover 100% of the project cost at P3.33 billion.
The firm also authorized the P7.48-billion funding of a wind farm project in Pagudpud, Ilocos Norte. This would take up 70% of the total project cost.
ACEN also approved the preparatory works needed for the planned follow-on offering, and a special audit of the company’s increase in authorized capital stock with multidisciplinary professional services firm SyCip Gorres Velayo & Co.
Last month, AC Energy President and Chief Executive Officer Eric T. Francia said that the firm had plans to sell its investments in coal-fired power plant projects in Bataan and Lanao del Norte in line with its goal to generate more than half of its energy from renewables in five years’ time.
Mr. Francia earlier said that financiers of renewables were able to limit their financial risks because they could invest in smaller amounts in those projects.
“The advantage of renewables, I should say, is that you can do your investments in digestible, reasonable chunks, unlike a large scale thermal plant where you typically invest billions of dollars,” he said during a webinar organized by the Philippine Energy Independence Council and the European Chamber of Commerce of the Philippines on Nov. 23.
Shares in ACEN on Thursday inched down by 0.16 % to close at P6.16 apiece. — Angelica Y. Yang