IFC Dedicates Investment of $75 Million in AC Energy’s Green Bonds

The International Finance Corporation (IFC) has announced that it has dedicated an outlay of $75 million in the foremost listed green bond issued and guaranteed by AC Energy. IFC’s investment secured a $300 million green bond, drawing interest from international and Philippine institutional and bank investors.

As per IFC and AC Energy, this is the foremost climate bond certified infrastructure-focused green bond to be publicly listed in Southeast Asia. The five-year green bond is listed on the Singapore Exchange.

The earnings from the AC Energy green bonds are estimated to be used to finance the company’s plans to develop up to 5 GW of renewable energy projects in East Asia and Pacific to 2025, with IFC’s subscription dedicated to selected solar PV and wind projects in Vietnam.

“We are delighted to partner with a global player like IFC as we take a major step to grow our renewable energy investments. IFC’s anchor investment and extensive experience in green bonds were key in successfully mobilizing substantial international and Philippine investment in AC Energy’s maiden capital market offering,” supposed Eric T. Francia, AC Energy president and CEO.

Vivek Pathak, IFC director for East Asia and the Pacific, believed, “This partnership, leveraging IFC’s extensive global experience in green bonds, demonstrates the tremendous potential of the green bond asset class as a tool for mobilizing international institutional capital into infrastructure assets.” He added, “We look forward to expanding our support of such issuances across Asia, advancing the integration of regional power and financial markets

This investment is in line with IFC’s goal to develop green capital markets, comprising infrastructure-targeted green bonds, vital for financing the region’s infrastructure needs.