ACEN CORPORATION (PSE: ACEN) received on 10 August 2023 the Order of Registration and Permit to Offer Securities for Sale issued by the Philippine Securities and Exchange Commission for the public offer and sale of up to 25 million preferred shares as the first tranche of the company’s three-year shelf registration of up to 50 million preferred shares. The Company received the notice of approval from the Philippine Stock Exchange, Inc. on 5 August 2023.
The first tranche consists of 12.5 million perpetual, cumulative, non-voting, non-participating, non-convertible, redeemable, and re-issuable Philippine Peso-denominated preferred shares with an oversubscription option of up to 12.5 million preferred shares at an offer price of Php1,000 per preferred share (the “Offer Shares”) and shall be offered in two series, for a total offer size of up to Php25.0 billion (the “Offer”).
The Series A Preferred Shares will bear an initial dividend rate of 7.1330% per annum, with a dividend rate re-setting on the 5th anniversary of the issue date. The Series B Preferred Shares will bear a fixed dividend rate of 8.0000% per annum and are not subject to any dividend rate re-setting. The Series B Preferred Shares, once issued, will be the first Philippine Peso-denominated fixed-for-life equity instrument offered and listed on Main Board of the PSE. The Offer Shares will be traded under the symbols, ACENA and ACENB for the Series A Preferred Shares and Series B Preferred Shares, respectively.
In accordance with ACEN’s Green Equity Framework, the net proceeds from the preferred share issuance will be used for the refinancing of short-term bridge loans for Eligible Green Projects, or financing of new or existing Eligible Green Projects, according to well-defined guidelines for the use of proceeds for renewable energy projects. ACEN will monitor and report the allocation of the proceeds as required by applicable regulations.
Eric Francia, ACEN president and CEO, said, “This issuance further strengthens ACEN’s balance sheet and will help the company attain its 2030 aspiration of achieving 20 GW of renewables. ACEN is currently building around 1,100 MW of renewable energy plants in the Philippines, and more projects are expected to be added in the coming years. This financing initiative will enable ACEN to continue its aggressive renewables expansion.”
Cora Dizon, ACEN chief finance officer, said, “We are greatly encouraged by the interest shown by both institutional and individual investors in this offering, even amidst tight financial conditions. It is an honor for ACEN to pioneer the issuance of the first ever Peso-denominated fixed-for-life equity instrument in the country, making a significant mark in the financial market. This underlines our determination to blaze new trails in the financial sector.”
The offer period will run from 11 to 23 August 2023. The target listing date of the Offer Shares on the Main Board of the PSE is on 1 September 2023. A copy of ACEN’s Prospectus and Offering Supplement for the preferred shares can be accessed through the company’s corporate website:
www.acenrenewables.com/acen-prospectus/
BDO Capital & Investment Corporation, BPI Capital Corporation, and China Bank Capital Corporation are the joint issue managers and, together with PNB Capital and Investment Corporation, RCBC Capital Corporation, and SB Capital Investment Corporation, are the joint lead underwriters and bookrunners for the Offer.
