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Philippines Newsletter - May 2024



Market summary


  • The Energy & Utilities sector saw a significant number of deals during the month. The volume of the deals in this sector amounted to USD763.8m. This is largely attributed to the fundraising efforts of Alternergy Holdings Corp., Maynilad Water Services Inc., and Energy Development Corporation who each fundraised USD170.6m.

  • Two local firms in Utilities were the subject of acquisitions this month. Trident Water Company was the most notable of the month with its USD252m acquisition of the Manila Water Company. Additionally, in this sector, Tokyo Gas Co. finished its minority acquisition of FGEN LNG for an undisclosed account.


*Aggregate Deal Values = c. USD890.8m

 

This month’s top deals


Energy & Utilities

Alternergy gets PHP2 billion loan to finance RE projects

Alternergy Holdings Corp. said it had signed a deal with BDO Unibank, Inc. for a PHP2 billion green corporate loan that will finance its renewable energy (RE) projects. The company’s board approved the financing, which can be increased to as much as PHP4 billion, on May 7, it said in a statement.


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Alternergy gets PHP2 billion loan to finance RE projects

Alternergy gets PHP8 billion in loans for wind project

Alternergy Holdings Corp. through its unit has obtained an PHP8 billion loan from two local banks for the development of its 112-megawatt (MW) wind project in Rizal province. Alternergy Tanay Wind Corp. got loans from Bank of the Philippine Islands (BPI) and Security Bank Corp., the publicly listed local renewable energy developer said. The company said the two banks lent PHP4 billion each, acting as co-lenders for the transaction, while BPI Capital Corp. and SB Capital Investment Corp. acted as joint lead arrangers.


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Alternergy gets PHP8 billion in loans for wind project

Maynilad borrows PHP10 billion to fund capex

Maynilad Water Services, Inc. announced a PHP10 billion loan from Metropolitan Bank & Trust Co. to fulfill its capital expenditure needs for 2024. “With this loan, we are in a better position to pursue our capital expenditure program that will further enhance water services for our over 10.3 million customers”, Maynilad Chief Operating Officer Randolph T. Estrellado said in a statement.

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Maynilad borrows PHP10 billion to fund capex

Ayala sells Manila Water stake to billionaire Enrique Razon for USD252 million

Philippine conglomerate Ayala Corp sold its entire stake in utility firm Manila Water Company (MWC) to top shareholder Trident Water Company for a gross consideration of around PHP14.5 billion (USD251.87 million). Enrique Razon, a Philippine billionaire and a port and casino tycoon who owns Trident Water, acquired a 25% stake in MWC in early 2020. It currently holds 58.32% voting power in the utility firm.


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Ayala sells Manila Water stake to billionaire Enrique Razon for USD252 million

EDC’s PHP10 billion Asean green bonds get SEC greenlight

Energy Development Corp. (EDC) had obtained the green light from the Securities and Exchange Commission (SEC) to raise as much as PHP10 billion via the issuance of ASEAN green bonds. The corporate regulator has issued a Certificate of Permit to Offer Securities for Sale to EDC. The offer period was open from May 13 to 17.


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EDC’s PHP10 billion Asean green bonds get SEC greenlight

Tokyo Gas finalizes acquisition of 20% stake in Batangas LNG terminal operator

Lopez-led First Gen Corp.’s subsidiary has inked agreements with Tokyo Gas Co., Ltd. to finalize the latter’s acquisition of a 20% stake in FGEN LNG Corp., it said. First Gen LNG Holdings Corp. (FGEN LNG Holdings) executed a shareholders’ agreement and share subscription agreement with Tokyo Gas, which will acquire a minority stake in FGEN LNG, the listed company said in a regulatory filing.


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Tokyo Gas finalizes acquisition of 20% stake in Batangas LNG terminal operator

Telecommunication

ACEN lends more funds for solar power projects

ACEN, the listed energy platform of the Ayala Group, is lending more funds to one of its subsidiaries to bankroll solar power projects that will supply energy to local telecom towers. In a stock exchange filing, ACEN said it would raise the credit facility it provided to YMP Telecom Power Inc. to PHP466 million from the initial amount of P200 million.


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ACEN lends more funds for solar power projects


PLDT takes out PHP4 billion green loan for expansion

Telco leader PLDT Inc. has doubled down on its strategy to acquire sustainable loans as it took out PHP4 billion in green financing from Metropolitan Bank and Trust Co. to fund its network expansion. In a disclosure to the local bourse, PLDT said it landed a green loan worth PHP4 billion from Metrobank, the first of this kind secured by the telco from a local creditor.

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PLDT takes out PHP4 billion green loan for expansion


Real Estate

SEC approves SM Prime’s PHP100 billion bond program

The Securities and Exchange Commission (SEC) has approved the shelf registration of Sy-led property developer SM Prime Holdings, Inc. for up to PHP100 billion of fixed-rate bonds. During a meeting on May 23, the Commission En Banc gave the green light for the registration statement of SM Prime’s peso-denominated bonds, which can be offered in one or more tranches, the SEC said in a statement.


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SEC approves SM Prime’s PHP100 billion bond program

Ayala Land, subsidiary raise PHP3.18 billion from sale of AREIT shares

Zobel family-led property developer Ayala Land Inc. (ALI) and its subsidiary have sold PHP3.18 billion worth of their shares in the Ayala Group’s real estate investment trust arm (AREIT), a move that is related to an asset-for-share deal with the latter. ALI said the block sale, which it executed with subsidiary Westview Commercial Ventures Corp., involved 98 million AREIT common shares at PHP32.45 each.


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Ayala Land, subsidiary raise PHP3.18 billion from sale of AREIT shares



Note: Deal values only include disclosed completed deals with amounts restricted to local scene i.e. amounts related to the Philippine entity and/or business. Rumored, announced, or planned deals not included. Cross-posted deals are also adjusted to avoid double count.

*USD 1.00 = PHP58.6 as of 30/04/2024

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