AC Energy Corp., Ayala Group’s energy arm, signed a P13.7-billion omnibus loan and security agreement with Bank of Philippine Islands and Rizal Commercial Banking Corp. for wholly-owned subsidiary South Luzon Thermal Energy Corp.
The loan facility is intended to refinance SLTEC’s outstanding P9.8-billion loan facility, fund the partial redemption of capital in SLTEC held by ACEN and finance other transaction-related expenses.
The transaction is the first step towards the company’s 244-megawatt coal plant’s transition to cleaner technology by 2040, or 15 years earlier than the end of its technical life under an energy transition mechanism financing.
ACEN will use the proceeds of the equity redemption to reinvest in renewable energy projects. Together with the Ayala group, ACEN announced its commitment to net-zero greenhouse gas emissions by 2050 in November 2021.
The goal is supported by key milestones that will bring ACEN generation output to 100-percent renewable energy by 2025.