• ACEN has issued and listed its maiden Philippine Peso-denominated Preferred Shares on 1 September 2023
• The Series A Preferred Shares, traded under the symbol ACENA, has an initial dividend rate of 7.1330%
• The Series B Preferred Shares, traded under the symbol ACENB, has a fixed dividend rate of 8.0000%, and is the first Philippine Peso-denominated fixed-for-life equity instrument offered and listed on the PSE
4 September 2023 – ACEN CORPORATION (PSE: ACEN) marked the issuance of its ₱25.0 billion perpetual preferred shares (the “Offer”) which were listed on the Main Board of The Philippine Stock Exchange, Inc. (“PSE”) on 1 September 2023 under the trading symbols “ACENA” for the Series A preferred shares (the “Series A Preferred Shares”) and “ACENB” for the Series B preferred shares (the “Series B Preferred Shares”) (collectively, the “Offer Shares”). The Offer is the first tranche under ACEN’s shelf registration of up to 50 million preferred shares rendered effective by the Securities and Exchange Commission on 10 August 2023.
The Offer Shares were publicly offered from 11 to 23 August 2023 and were met with strong demand from both institutional and retail investors allowing ACEN to fully exercise its oversubscription option of up to ₱12.5 billion on top of the base offer of ₱12.5 billion. ACEN’s issuance is the largest preferred shares offering in the Philippines since 2016.
Eric Francia, ACEN president and CEO, said: “We are very thankful for the exceptional support that we received from investors. The additional capital further strengthens the company’s balance sheet and helps us accelerate our renewables expansion.”
Cora Dizon, ACEN chief finance officer, said: “The issuance is part of the company’s strategy to diversify its sources of funding, and to gain access to a wider base of investors. Being the first of its kind in the Philippines with the fixed-for-life feature, we are delighted with the strong investor response, which is a testament to the strong alignment with ACEN’s sustainability focus and growth aspirations.”
The Series A Preferred Shares carry an initial dividend rate of 7.1330% per annum, with a dividend rate re-setting on the 5th anniversary of the listing date. The Series B Preferred Shares has a fixed dividend rate of 8.0000% per annum with no dividend rate re-setting, making it the first Philippine Peso-denominated fixed-for-life equity instrument listed on the PSE. The Company shall have the option to redeem (in whole but not in part) the Series A Preferred Shares and the Series B Preferred Shares starting on the 3rd and 7th anniversary of the listing date, respectively, and on every dividend payment date thereafter. The Offer Shares has cumulative and non-participating dividends based on the Offer Price of ₱1,000.00 payable quarterly in arrear.
In an earlier disclosure, ACEN announced that the amount raised will be used for the financing of new or existing Eligible Green Projects in accordance with the Company’s Green Equity Framework, including the refinancing of short-term bridge loans for Eligible Green Projects, and can enable more than 1 GW of renewable energy projects in the Philippines. ACEN will monitor and report the allocation of the proceeds as required by applicable regulations.
BDO Capital & Investment Corporation, BPI Capital Corporation, and China Bank Capital Corporation are the joint issue managers and, together with PNB Capital and Investment Corporation, RCBC Capital Corporation, and SB Capital Investment Corporation, are the joint lead underwriters and bookrunners for the Offer.
In photo (from L-R): Dodjie Lagazo, ACEN executive director and head of Legal and Regulatory; Cecile Cruzabra, ACEN treasurer; Cora Dizon, ACEN CFO & chief compliance officer; Eric Francia, ACEN president & CEO; Cezar Consing, ACEN vice chairman; Kelvin Lester Lee, SEC commissioner; Ramon Monzon, PSE president & CEO; Roel Refran, PSE COO; Marigel Baniqued-Garcia, PSE issuer regulation division head; Aissa Encarnacion, PSE corporate secretary; Veronica Vicedo-Del Rosario, PSE general counsel