[ad_1]
AC Energy Corp., led by Ayala, and its unit ACE Endevor, Inc. signed a shareholders agreement with a subsidiary of Citicore Power, Inc. to build a 50 megawatt photovoltaic solar power in Arayat and in Mexico, Pampanga.
In a regulatory filing on Friday, AC Energy said the solar installation is scheduled to go online in November 2021.
Under the agreement, Citicore Solar Energy Corp. will own 50% of the shares in the special purpose vehicle of the solar project Greencore Power Solutions 3, Inc. AC Energy and ACE Endevor will own 45% and 5%, respectively.
The joint venture supports AC Energy’s goal of being the Ayalas energy group’s growth platform, the firm said. With the solar installation, AC Energy would have the opportunity to earn “stable dividend income” from the project.
The totally new standalone solar farm, he said, is considered to “provide daytime power to Luzon’s grid.”
Under the agreement, the Citicore unit will provide engineering, procurement and construction services through its affiliated entities, including Megawide Construction Corp. or any of its subsidiaries.
Its parent company Citicore or its units will be responsible for project development and operations and maintenance.
In a separate disclosure on Friday, AC Energy said it would provide a loan of up to P2.675 billion to Greencore to finance the design, engineering, construction, acquisition and supply, operation and maintenance of the 50 MW solar facility.
“The loan will be guaranteed by a real estate mortgage on the real assets of the Borrower (Greencore) in favor of the Company (AC Energy); a mortgage and pledge on the borrower’s shareholders’ participation and the project’s cash flows, ”said AC Energy.
In another filing on Friday, he said he had subscribed to Greencore common shares for P2.25 million. The shares, at 2.25 million, will be issued from Greencore’s unissued share capital.
“The subscription will be used by Greencore to partially finance the development and construction of (the) solar plant,” AC Energy said.
In December, AC Energy approved nearly P10.81 billion in funding for a solar project and a wind farm. In an earlier disclosure, the company said its board had approved financing for a solar project in Arayat and Mexico, Pampanga through a guaranteed loan. The funding, which amounted to P3.33 billion, was said to cover the full cost of the project.
On Friday, AC Energy’s shares on the local stock market rose 0.14% or 0.01 cents to end at P7.22 each. – Angelica Y. Yang
[ad_2]
