Project Name AC Energy Green Bond Project
Project Number 53037-001
Borrower / Company AC Energy Finance International Limited
AC Energy, Inc.
Ayala Corporation
Country / Economy Regional
Indonesia
Philippines
Viet Nam
Location Indonesia - Nation-wide; Philippines - Nation-wide; Viet Nam - Nation-wide
Type or Modality of Assistance
3771 Debt Security Ordinary capital resources USD 20.00 million Committed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy /

Gender Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Ahmed, Salman
Project Sponsor(s)
Description The transaction involves a debt investment of up to $20,000,000 in Green Bonds to be issued by AC Energy Finance International Limited, for the AC Energy Green Bond project. The proceeds of the bond offering will be used primarily for solar and wind projects in the Philippines, Indonesia, Viet Nam.
Objectives and Scope
Linkage to Country/Regional Strategy The Project is consistent with ADB's Strategy 2030, which has a target of 75% of ADB operations to support climate change mitigation and adaptation by 2030. The project is consistent with ADB's Energy Policy, which supports wider access to energy through investments in energy efficiency and renewable energy projects. The project will contribute to ADB's target of $6 billion in annual financing for climate mitigation and adaptation by 2020 and catalyze further private sector resources in the clean energy segment.
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples B
Summary of Environmental and Social Aspects
Environmental Aspects TThe project is classified as category B for environment. It is processed as a general corporate finance transaction following ADB SPS Safeguards Requirement 4. Prior to the identification of subprojects that will be supported by the ADB investment, AC Energy has developed and adopted a corporate-wide environmental and social management system (ESMS) satisfactory with ADBs requirements. Also, an environmental, health and safety and social manager has been designated to oversee the implementation of the ESMS and management of environmental and social impacts of subprojects. As of to date, AC Energy has identified only one subproject utilizing the Green Bond amount i.e. the GIGALSOL3 Solar Farm Project in Palauig, Zambales. AC Energy engaged an environmental consultant to assess the gaps of the local Initial Environmental Examination (IEE) and audit the environmental performance of the construction activities against the company's ESMS. The corrective action plan, included in the environmental compliance audit report, was implemented and closed-out by AC Energy in April 2021. The safeguards documents i.e. IEE and the environmental compliance audit reports for the subproject, were accepted by ADB and have been disclosed on ADBs website. The ESMS approved by ADB is being implemented by AC Energy for subprojects using ADB proceeds and for its other projects.
Involuntary Resettlement Though the project was classified as category B for involuntary resettlement, ADB proceeds funded the construction and operation of the GIGASOL3 Solar Farm Project, categorized as C on involuntary resettlement impacts. In compliance with ADB SPS and AC Energy ESMS, social due diligence and compliance audit was conducted by a third-party expert, which confirmed that the establishment of the solar farm did not result in any physical or economic displacement of landowners and land users. The land was acquired from a private corporation through a willing seller-willing buyer based on commercially agreed terms. The land was not acquired through expropriation based on eminent domain.
Indigenous Peoples The project was classified as category B for indigenous peoples. However, the ADB-funded GIGASOL3 Solar Farm Project was assessed to have category C impacts on Indigenous Peoples. The construction and operation of the solar farm did not affect the dignity, human rights, livelihood systems, culture, or the territories and natural or cultural resources that own, use, occupy, or claim as an ancestral domain or asset of any ethnic minority groups.
Stakeholder Communication, Participation, and Consultation The corporate-wide ESMS incorporates frameworks for stakeholder engagement, community consultation, and grievance redress mechanism. GIGASOL3 Solar Farm actively engages with the surrounding communities, local authorities, and relevant stakeholders to provide updates on the status of the operation and consult on the corporate social responsibility programs and development projects under the ER-1-94 program (benefits of the communities from hosting the solar farm). The solar farm grievance redress mechanism is accessible to internal and external stakeholders, and there were no grievances received from the employees, local communities, and other stakeholders.
Timetable for assistance design, processing and implementation
Concept Clearance 22 Jan 2019
Credit Committee Meeting 25 Jan 2019
Approval 30 Jan 2019
Last PDS Update 24 Aug 2023
 
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Source URL: https://www.adb.org/projects/53037-001/main