By Nimfa L. Estrellado Ayala-led ACEN Corp. injects P900 million in short-term financing into its major Quezon North Wind project, a strateg...
 |
| Ayala-led ACEN Corp. injects P900 million in short-term financing into its major Quezon North Wind project, a strategic move to assure the market and lenders of its domestic commitment following an 88% plunge in net income due to a major regulatory loss in Vietnam. (ACEN) |
REAL, Quezon – ACEN Corp., the listed energy platform of the Ayala group, is injecting P900 million of internal funds into its P70-billion Quezon North Wind Power Project, a move analysts view as a critical measure to maintain project momentum despite recent financial setbacks overseas.
ACEN confirmed today it has extended a short-term loan to its subsidiary, Giga Ace 6, Inc., the project company developing the 553-megawatt (MW) wind farm in Quezon province. This internal financing acts as a crucial bridge to support ongoing construction, including the dedicated jetty port and extensive earthworks for the project’s first phase, set for completion in late 2026. The P900M supplements the P34.4-billion senior secured green term loan facility secured in April from a consortium of major Philippine banks.
The financial lifeline comes as ACEN navigates significant corporate challenges detailed in its first-half 2025 results. The company’s net income plunged by 88% to P763 million, primarily due to a P2.7-billion non-cash impairment loss related to its wind farms in Vietnam. The loss stemmed from projects experiencing extended delays and ultimately receiving a lower final feed-in-tariff (FIT) from state utility Vietnam Electricity (EVN)—a rate that was applied retroactively.
ACEN President and CEO Eric Francia stated that the company "continues to face macro and sectoral headwinds," but assured that the "company’s underlying health and long-term prospects remain robust." The P900M injection demonstrates a corporate focus on execution, a key pillar of its strategy to operationalize approximately 1.2 GW of new capacity by the end of next year.
Market analysts view the P900-million internal loan as a positive sign of corporate dedication. "ACEN's willingness to use its own capital shows they are fully committed to meeting the construction schedule, vital for the integrity of their green loan," noted an analyst familiar with the company's regional portfolio. "The Vietnam impairment, while large, is being viewed largely as a regulatory risk event specific to that market's policy shifts, rather than a failure of ACEN's core execution model."
The regulatory friction in Vietnam is an industry-wide concern. International reports indicate that hundreds of foreign and domestic investors have formally protested EVN's decisions, arguing that the retroactive application of new regulatory requirements breaches existing power purchase agreements (PPAs) and severely damages investor confidence. The Ministry of Industry and Trade (MoIT) has reportedly urged EVN to find solutions that minimize legal disputes. Vietnam Electricity (EVN) was unavailable for comment on the specific ACEN impairment.
In the Philippines, the Department of Energy (DOE) considers the Quezon North Wind Project a key pillar in the country's clean energy transition. The DOE has consistently emphasized the need for large, fully funded renewable projects to stabilize the grid and meet national targets. ACEN’s stock closed higher following the disclosure, reflecting market confidence in its long-term project pipeline.
No comments