What is a green bond? – Manila Bulletin

SPEAK OUT

Ignacio R. Bunye

Investopedia defines a green bond as a type of fixed income instrument specifically intended to raise funds for climate and environmental projects. Investopedia explains that green bonds are sometimes called climate bonds, but the two terms are not always synonymous.

“While climate bonds specifically finance projects that reduce carbon emissions or mitigate the effects of climate change, green bonds represent a broader category of instruments linked to projects with a positive environmental impact. Green bonds are part of a larger trend in socially responsible and ESG investing.

One such green bond is AC Energy’s ASEAN Green Bond (ACEN), Ayala Group’s publicly traded energy platform, recently listed in pesos. The £10 billion bond maturing in 2027 will support the operations of the following ACEN renewable projects, namely 1) the 283 MWdp San Marcelino Solar Farm 1 in Zambales 2) the 42 MWdp expansion of the farm 72 WDc Arayat-Mexico Solar Park in Pampanga and 3) the construction of the 133 MWdc Cagayan Solar Park in Lal-lo, Cagayan.

“This successful offering will help us achieve ACEN’s vision of reaching 20 GW of renewable energy capacity by 2030,” said ACEN Chairman and CEO Eric Francia.

The issue generated such investor interest that it was oversubscribed 8.6 times. The five-year bond offered a fixed annual rate of 6.05% and was given the highest possible rating of PRS Aaa by the Philippine Ratings Services Corporation.

It is ACEN’s first peso-denominated ASEAN green bond – the first tranche of a £30 billion borrowing program registered with the SEC. Previous ACEN offers were denominated in dollars. Including this one, ACEN raised a total of US$1.6 billion.

It’s no wonder that for the second consecutive year, ACEN has been recognized as the Philippines’ most outstanding company in the energy sector in Asia money’s most outstanding companies survey. More than 900 fund managers, analysts, bankers and rating agencies took part in the survey, which ended in July.
The official listing of the ACEN Green Bond with the Philippine Dealing and Exchange Corporation (PDEX) on September 22 was assisted by ACEN Deputy Chief Financial Officer Mary Syquia, BPI Capital Chairman Chiqui Huang, Chief Financial Officer and ACEN Treasurer Cora Dizon, ACEN Chairman/CEO Eric Francia, SEC Commissioner Kelvin Lester Lee, PDEx Chairman/CEO Antonino Nakpil, BDO Capital Chairman Ed Francisco, PDTC Chairman/CEO Ma. Theresa Ravalo, Arsenio Kenneth Ona, SVP of RCBC Capital, and Virgilio Chua, President of SB Capital.

BPI Organizational Changes

At its last meeting, the Board of Directors of the Bank of Philippine Islands (BPI) approved the resignation for medical reasons of Fernando Zobel de Ayala (FZA) as a director and as chairman/member of the main committees .
The board then approved the following organizational changes.

1. Appointment of Jaime Z. Urquijo as Deputy Director FZA

2. Appointment of Cezar P. “Bong” Consing as Vice Chairman of the Board and Member of the Nominating Committee.

3. Appointment of Jaime Augusto Zobel de Ayala (JAZA) as member and chairman of the personnel and remuneration committee

4. Appointment of Romeo L. Bernardo as member of the Executive Committee

At Ayala Corporation, the Board of Directors formalized the appointment of Bong Consing as President/CEO and Mercedita S. Nolledo as Deputy Director of FZA.

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