ACEN Corp. is eyeing a P5.5-billion loan from the Asian Development Bank (ADB) to develop solar photovoltaic projects in the country.
In addition to the loan, the firm is also seeking a partial credit guarantee of P1.1 billion, according to documents on the ADB website.
The loan and guarantee will be a “sustainability-linked facility with performance indicators on environmental and social matters. The loan proceeds will be used to finance solar photovoltaic projects in the Philippines,” it added.
“The sustainability-linked note aims to boost the renewable energy capacity of the Philippines, which has traditionally relied on coal to meet its growing electricity needs,” it added.
The ADB said that ACEN’s proposal is consistent with its strategy of promoting private sector participation in infrastructure through corporate financing and expanding support for renewable energy, among others.
“The project will contribute to poverty reduction through the provision of clean and sustainable electricity to support productivity while being able to improve the quality of life through the reduction of greenhouse gas emissions and improving local air quality,” it added.
The proposal will be up for approval on Oct. 20.
ACEN has about 4,200 megawatts of attributable capacity spread across the Philippines, Vietnam, Indonesia, India, and Australia.
It is targeting to expand its renewable energy portfolio to 20 gigawatts by 2030.
On Wednesday, ACEN shares declined by 0.21% or P0.01 to finish at P4.70 apiece. — Luisa Maria Jacinta C. Jocson