The International Finance Corporation (IFC), the private sector arm of the World Bank, has invested $75m in a $300m green bond listed in south-east Asia.
AC Energy, a subsidiary of Philippine industrial conglomerate Ayala Corporation, issued the first Climate Bond certified infrastructure-focused green bond to be publicly listed in south-east Asia.
Proceeds will be used to finance AC Energy’s plans for up to 5GW of renewable energy projects in east Asia and the Pacific to 2025.
IFC’s subscription is dedicated to selected solar PV and wind projects in Vietnam, particularly its equity stake in Gia Lai Electricity which is developing the first operational utility-scale solar projects in the country.
The investment will also support AC Energy’s strategy to establish itself as a regional player focused on renewable energy, beyond its home market in the Philippines.
IFC’s involvement has helped attract interest from international and Philippine-based institutional and banking investors, the company said.
AC Energy chief executive Eric Francia said: “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 mobilising substantial international and Philippine investment in AC Energy’s maiden capital market offering.”
AC Energy’s parent company, Ayala Corporation, is a strategic client of IFC in Asia and a founding member of the UN Global Compact Network in the Philippines.
IFC East Asia and the Pacific director Vivek Pathak said: “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 mobilising international institutional capital into infrastructure assets.”
The investment is in line with IFC’s commitment to grow green capital markets, including infrastructure-targeted green bonds needed to fund the region’s infrastructure needs.