State pension fund Government Service Insurance System (GSIS) has invested in ACEN’s Energy Transition Mechanism (ETM) initiative for the South Luzon Thermal Energy Corporation (SLTEC) amounting to Php2.2 billion. This is in line with the call of the government to support infrastructure programs and initiatives to promote clean energy.
This partnership was sealed after GSIS and Ayala-led ACEN signed a memorandum of agreement today, 7 November, at the ACEN headquarters in Makati City.
The GSIS subscribed to the ACEN backed 8.98% redeemable preferred shares of SLTEC. The proceeds will allow ACEN to transition the current state of SLTEC to a fully renewable energy supplier.
“We will fully support investments that prioritize optimal environmental, social, and governance (ESG) factors or outcomes consistent with our corporate social responsibility,” GSIS President and General Manager Wick Veloso said.
GSIS’s investment will, in effect, provide bridge financing to support ACEN’s transition to reach Net Zero greenhouse gas emissions by 2050, transition its generation portfolio to 100% renewable energy by 2025, and divest away from coal plants by 2040.
“As the listed energy platform of the Ayala Group, we aspire to be the largest listed platform in Southeast Asia, with a goal reaching 20GW of renewables capacity by 2030. We thank GSIS for providing us the funding that would help us achieve our commitment to achieve Net Zero greenhouse gas emissions by 2050,” ACEN President and CEO Eric Francia, for his part said.
“Our priority is to find ways to grow and sustain our funds to ensure that we are able to provide our over 2.5 million members and pensioners their benefits when they fall due. In particular, this investment will yield high dividends that will help us further strengthen our actuarial life, and provide opportunities to further diversify our funds. Furthermore, the partnership with ACEN will help improve our programs and services that will ultimately redound to greater members’ experience,” Veloso said.
