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
    Kim, Viktoriya
    Private Sector Operations Department
    Request for information
  • Country
    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 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 / Renewable energy generation - solar
Gender Equity and Mainstreaming Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Kim, Viktoriya
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 The 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 ADB's 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. In February 2020, AC Energy informed ADB that it plans to utilize the Green Bond amount to support the construction and operations of 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 ADB's website.
Involuntary Resettlement The project is classified as category B for involuntary resettlement. AC Energy's corporate-wide ESMS satisfactory to ADB was adopted in February 2020. It includes environmental and social procedures process specific to ADB-funded projects. AC Energy, wherever possible, will acquire land and other assets for the establishments of subprojects through a negotiated settlement, verified by a third-party expert, following the principles of adequate and fair pricing and based on meaningful consultations with affected persons. Suppose government-led compulsory land acquisition is found to be inevitable, AC Energy will prepare a Land Acquisition and Resettlement Plan (LARP). The LARP will elaborate the land and right-of-way acquisition strategy, modes of acquisition, the framework for a negotiated settlement, evaluation of the extent of impacts, and identification of actions that have to be undertaken to comply with the ADB SPS and national laws. The first subproject of AC Energy, the GIGASOL3 Solar Farm Project, is categorized as C on involuntary resettlement impacts. A third-party expert conducted social due diligence and compliance audit and confirmed that land was acquired from a private corporation through a willing seller-willing buyer based on commercially agreed terms. Expropriation based on eminent domain was never employed in any part of the acquisition process.
Indigenous Peoples The project is classified as category B for indigenous peoples. Through AC Energy's ESMS, potential impacts of subprojects to ethnic minority groups will be screened and measured. AC Energy will prepare an Indigenous Peoples Plan (IPP) if direct or indirect impacts of subprojects on ethnic minority groups are envisaged to minimize and manage any potential unanticipated and unavoidable impacts on ethnic minority groups. GIGASOL3 Solar Farm Project was assessed to have category C impacts on Indigenous Peoples. The subproject does not affect the dignity, human rights, livelihood systems, or culture or the territories or 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. Public consultations are held as part of the environmental and social impact assessment process required under national laws and permitting procedures. During construction and operations, community relations staff at the subproject level maintains a good working relationship with different stakeholders and engages with host communities through community programs. At the corporate level, AC Energy reports its financial, economic, social, and environmental performance as part of Ayala Corporation, its parent company's, annual sustainability report. Subprojects are guided by the corporate policy in receiving and addressing grievances. On-site staff and management addresses community issues and normally elevates complex legal concerns to the corporate office.
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 23 Jul 2021

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: 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.

Title Document Type Document Date
AC Energy Green Bond Project: GIGASOL3 Solar Farm Subproject Environmental Compliance Audit Report Environment Compliance Audit Reports Apr 2021
AC Energy Green Bond Project: GIGASOL3 Solar Farm Subproject Social Compliance Audit Report Social Compliance Audit Report Apr 2021
AC Energy Green Bond Project: GIGASOL3 Solar Farm Subproject Initial Environmental Examination Initial Environmental Examination Apr 2021
AC Energy Green Bond Project: Environmental and Social Monitoring Report (2019) Environmental and Social Monitoring Reports May 2020

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.