DEAL: ASEAN’s debut CBI-certified green bond

Author: Karry Lai | Published: 14 Mar 2019

AC Energy has listed the first ever green bond from an ASEAN [Association of Southeast Asian Nations] issuer to receive the Climate Bonds Initiative’s (CBI) stamp of approval. The $225 million deal is listed on the Singapore Stock Exchange (SGX), and provides a framework for future southeast Asian issuers.

The net proceeds of the notes will finance renewable energy projects in Vietnam, the Philippines, Indonesia and others in Asia. A subsidiary of Ayala Corporation, AC Energy aims to increase its energy capacity to 5 gigawatts by 2025, with 50% of the energy mix powered by renewable energy.

The issuance is supported by the International Finance Corporation (IFC), which has invested $75 million in the 2024 tranche, as well as Asian Development Bank (ADB), which has invested $20 million in the 2029 tranche.

While timing was not perfect, the issuer saw a window of opportunity. "From a market perspective, benchmark...