HSBC issues line of credit for ACEN wind farm
The Philippines branch of Hongkong and Shanghai Banking Corp. ltd. (HSBC Philippines) has issued its first sustainable commercial letter of credit (LC) to support the completion of AC Energy Corp’s 160 megawatt (MW) Pagudpud wind turbine. (ACEN) Closed.
Melina C. Concha, head of wholesale banking at HSBC in the Philippines, said the company has always sought to support sustainability-related projects as part of the bank’s sustainability program.
“We are delighted to hold hands with the Pagudpud Wind project team to bring this green project to fruition,” said Concha.
According to a statement from the lender, the commercial facilities will provide LC capacity to the wind project “at a critical time” as it progresses towards the completion of the Pagudpud wind farm development.
Located in Pagudpud, Ilocos Norte, the project is expected to be the largest wind farm in the Philippines to date. The 11.4 billion peso facility will be ACEN’s third wind development at Ilocos Norte. Target completion of the project is scheduled for the fourth quarter of this year, in time for full-year operations in 2023 when supply is expected to be tight in the Luzon power market.
Once operational, the 32-turbine wind power project will contribute to the government’s goal of achieving a more sustainable energy mix, with at least 50% renewable sources by 2040. It is also expected to support inclusive growth and sustainable development in Ilocos Norte by further encouraging investment and the creation of skilled employment opportunities for the local community.
The wind farm is expected to generate 504 gigawatt hours of renewable energy per year and avoid 344,604 metric tons of C02 emissions per year. It is also expected to create approximately 380 jobs within the community.
“HSBC’s commercial facilities will help ensure unimpeded progress towards the completion of the Pagudpud wind project, by providing rapid access to credit to secure key components of the plant. HSBC is widely known in the market for its innovative products and sustainable finance solutions,” said Jean Tricia Ramos, Head of HSBC Philippines Global Trade and Receivables Finance. “We are very excited to play a role in the growth of the emerging renewable energy sector in the Philippines.”
ACEN is the listed energy platform of the Ayala group. The company has over 3,000 MW of attributable capacity in the Philippines, Vietnam, Indonesia, India and Australia. The company’s share of renewable capacity is around 80%, one of the highest in the region.
ACEN’s aspiration is to be the largest listed renewable energy platform in Southeast Asia, with a target of reaching 5,000 MW of renewable energy capacity by 2025. ACEN announced in October last year its commitment to achieve net zero greenhouse gas emissions by 2050.
“We greatly appreciate and appreciate HSBC’s support in making this project a reality,” said ACEN Director of Development Jose Maria P. Zabaleta. “As one of the largest wind farms in the country when completed, it will go a long way towards achieving the corporate and net zero goals of all stakeholders and the country’s energy security goals.”
Image credits: Alexey Kornylyev | Dreamstime.com