Insular Life (InLife) announced that it has signed an agreement to acquire P1 billion redeemable preferred shares of South Luzon Thermal Energy Corporation (SLTEC), a subsidiary of the Ayala Group’s listed energy platform, ACEN Corp. (Acen), through the pioneering Energy Transition Financing (ETF) mechanism, subject to regulatory approvals.
Investment proceeds from Acen’s divestment of the redeemable preferred shares will be used in the development of more renewable projects with the commitment of decommissioning SLTEC’s coal-fired plant and transitioning it to a cleaner technology by 2040, 15 years before the end of its technical life.
InLife, along with ETM Philippines Holdings, Inc. (Ephi), has a committed aggregate value of P3.7 billion to support the ETF mechanism implemented by Acen and SLTEC.
“To deliver a lifetime for good, for us at InLife, also means investing in cleaner air and environmental solutions for future generations. The proceeds of our investment will be used to develop renewable energy and eventually allow decommissioning of the coal plants. We join the call for the development of more renewable energy sources through this pioneering transition mechanism,” InLife Executive Chairperson Nina Aguas said.
She added that the ETF is a groundbreaking solution to a rising global concern.
The ETF mechanism is a partnership between like-minded institutions whose goal is to responsibly shift energy production from fossil fuels to clean energy. Its capital-raising approach allows Acen-SLTEC to pursue a just energy transition for its coal plant and, at the same time, start the development of renewable energy projects. It is one of the first of its kind in the world. (PR)