Regional : AC Energy Green Bond Project

Nonsovereign Project | 53037-001

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.

Project Details

  • Project Officer
    Shankaran, Bharath
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Regional
  • Sector
    • Energy
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
Approval Number Facility Fund Source Amount Status
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 / Renewable energy generation - solar

Gender
Some gender elements
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 purchased 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. No additional land was acquired during the operations
    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. The solar farm grievance redress mechanism is accessible to workers, local communities, and other stakeholders.

    Contact

    Responsible ADB Officer
    Shankaran, Bharath
    Responsible ADB Division
    Portfolio Management Division, PSOD
    Responsible ADB Department
    Private Sector Operations Department

    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
    25 Apr 2024

    Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

    The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

    The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

    In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

    Title Document Type Document Date
    AC Energy Green Bond Project: Extended Annual Review Report Extended Annual Review Reports Nov 2023
    AC Energy Green Bond Project: FAST Report Faster Approach to Small Nonsovereign Transactions Feb 2019
    AC Energy Green Bond Project: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Jan 2019

    Safeguard Documents See also: Safeguards
    Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.


    Evaluation Documents See also: Independent Evaluation

    None currently available.


    Related Publications

    None currently available.


    The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

    Requests for information may also be directed to the InfoUnit.

    • 03 Apr 2019 | Project Result / Case Study

      Investing in Asia’s maiden green bonds

      Green bonds are an increasingly viable option for investors in Asia, like pension and superannuation funds, looking to get involved in green sustainable financing.