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AboitizPower’s green bonds deal wins two international honors

The project bond issued for the Tiwi-MakBan Geothermal Energy Project of AboitizPower was the 2016 Bond Deal of the Year, as cited by Project Finance International magazine of Thomson Reuters in their annual PFI Awards held in London in early February this year, and the Best Renewable Deal of the Year at the Alpha Southeast Asia Awards held in Kuala Lumpur, Malaysia in January.

Backed by the Asian Development Bank, the PHP12.5-billion local currency, multi-tranche bond issuance was the first green bond issuance in Asia and the Pacific.

AboitizPower through its subsidiary AP Renewables, Inc., used the issuance to finance the rehabilitation of the Tiwi-MakBan geothermal power facilities, which it bought from the government in 2009 and to partially fund its operating expenditures and future capital investments.

The MakBan Geothermal Power Plant in Bay, Laguna
The MakBan Geothermal Power Plant in Bay, Laguna

The two power plants, located in Batangas and Laguna (MakBan) as well as in Tiwi, Albay combine for 390 MW of clean renewable power for the Luzon grid.

“This award proves we are on the right path, both in our efforts to find power generation technologies that support global commitments to address climate change and in our intention to find innovative and viable financing options to support our plans,” AboitizPower President and Chief Operating Officer Antonio R. Moraza said. “It has always been our goal to provide ample, reliable and reasonably priced power through a balanced mix of generation assets so we can support the energy needs of the Philippines.”

The climate bond for Tiwi-MakBan was certified by the Climate Bonds Initiative and is considered the first in Asia and the Pacific.