AC ENERGY Corp. (ACEN) signed an amended and restated omnibus loan and security agreement with its wholly owned subsidiary South Luzon Thermal Energy Corp. (SLTEC) to increase its existing loan to P13.7 billion from P11 billion.
The loan facility will be used to refinance the existing loan and fund ACEN’s partial redemption of capital in SLTEC, with the proceeds of the equity redemption to be used for renewable energy project investments.
The lenders of the energy transition financing include Bank of Philippine Islands and Rizal Commercial Banking Corp.
Both companies also forged an administration and management agreement giving ACEN full control and management of SLTEC’s two-unit, each with 135 megawatts (MW), SLTEC circulating fluidized bed thermal power plant, as well as an operations and maintenance agreement.
In pursuit of the listed energy platform’s goal of 100% renewable energy-backed generation output by 2025, its 244-MW capacity coal-fired power plant in Calaca, Batangas is planned for decommissioning 15 years ahead of the end of its technical life.
This action follows the energy transition mechanism (ETM) spearheaded by the Asian Development Bank in South Asia and Southeast Asia to provide low-cost capital to coal-fired power plants accelerating their retirement and strengthening the presence of clean and renewable energy in the process.
“In leading the energy transition, enabling mechanisms such as the ETM help accelerate our shift to a low carbon growth path and unlock new renewable energy investments,” said ACEN President and Chief Executive Officer Eric T Francia.
Mr. Francia also noted that the public and private sectors’ shared commitment of achieving a low carbon economy can “make an impact on our climate goals.”
At the stock exchange on Monday, shares in ACEN advanced by P0.01 or 0.12% to close at P8.55 each. — Ram Christian S. Agustin
