ACEN signed an amended and restated omnibus loan and security agreement for its subsidiary South Luzon Thermal Energy Corp. (SLTEC) with the Bank of Philippine Islands and Rizal Commercial Banking Corp. as lenders.
ACEN said the loan facility of up to P13.7 billion is mainly intended to refinance SLTEC’s outstanding P9.8 billion loan facility.
The remaining amount is intended to fund the partial redemption of capital in SLTEC held by ACEN, subject to regulatory approvals as well as to finance other transaction-related expenses.
ACEN said the move is also part of the commitment to net-zero greenhouse gas emissions by 2050 and bring the company’s generation output to 100 percent renewable energy by 2025.
Through this mechanism, ACEN’s 244 megawatts (MW) coal-fired power plant in Calaca, Batangas shall be decommissioned by 2040 which is 15 years ahead of the end of its technical life.
ACEN currently has over MW of attributable capacity in the Philippines and across the region, of which over 3,300 MW or 87 percent is from renewable energy sources.
