ACEN Corporation has entered a P5 billion subscription agreement with its subsidiary Santa Cruz Solar Energy Inc. to fund a solar project, reinforcing its commitment to renewable energy in the Philippines.

Target Information

ACEN Corporation, a leading renewable energy producer in the Philippines, has made significant strides in sustainable energy development. On March 30, 2023, ACEN announced its investment through a subscription agreement with its wholly-owned subsidiary, Santa Cruz Solar Energy Inc. (SCSEI). This strategic move involves a substantial subscription of P5 billion, comprising 50 million common A shares and nearly 450 million redeemable preferred A shares aimed at funding the construction of a solar project in Zambales.

Industry Overview in the Philippines

The energy sector in the Philippines is witnessing a transformative wave driven by a growing emphasis on renewable energy. With the government's commitment to increasing the share of renewables in the energy mix, investments in solar, wind, and hydro energy are surging. In 2023, the sector has been bolstered by several significant deals, indicating robust investor confidence and a shift towards sustainable energy solutions.

The demand for renewable energy is primarily propelled by the increasing energy requirements associated with rapid urbanization and industrial growth in the country. Imports of fossil fuels continue to challenge energy security, making local renewa