ACEN completes the world’s first market-based ETM transaction that will enable the early retirement of the 246-MW SLTEC coal plant by 2040 and its transition to a cleaner technology
Sub-critical Circulating
Fluidized Bed (CFB)
Calaca, Batangas, Philippines |
South Luzon Thermal Energy Corporation (SLTEC)
South Luzon Thermal Energy Corporation (SLTEC)
total transaction value, providing steady
returns to ETM investors
emissions avoided with early retirement
proceeds to ACEN can enable
construction of the equivalent
of a 600 MW solar plant
following the successful completion
of the ETM transaction
Completed November 2022
Equity |
₱3.7 Bn |
Private investors have supported the deal in the first ever market-based ETM implementation |
|
Debt |
₱13.7 Bn |
Energy transition loan classification has enabled banks to support the project by differentiating it from traditional coal financing. |
Equity |
₱3.7 Bn |
Private investors have supported the deal in the first ever market-based ETM implementation |
Debt |
₱13.7 Bn |
Energy transition loan classification has enabled banks to support the project by differentiating it from traditional coal financing. |
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Paseo de Roxas cor. Makati Avenue
Makati 1226 Philippines
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Leveraging domestic private sector financing was possible given the reasonable plant size and value.
SLTEC capital structure was optimized through the refinancing / upsizing of project debt. The loan upsizing allowed the partial return of capital to ACEN.
The balance of equity was taken by equity investors with competitive cost of capital (e.g., major insurance companies, smaller institutional investors, high net worth investors).