HSBC Philippines has issued its first sustainable commercial Letter of Credit (LC) to support the completion of ACEN’s Pagudpud Wind Farm under the special purpose vehicle, Bayog Wind Power Corp. (Pagudpud Wind). The trade facilities will provide LC capabilities to the wind project at a critical moment as they progress towards completing the Pagudpud Wind Farm development.
Once operational, the 32-turbine, 160 MW onshore wind power development located in the province of Pagudpud, Ilocos Norte will contribute to the government’s goal to reach a more sustainable energy mix, with at least 50% renewable sources by 2040.1 It is also set to support inclusive and sustainable growth in Ilocos Norte by encouraging further investment and creating skilled job opportunities for local community.2 The wind farm is projected to generate 504 GWh of renewable energy per year and avoid 344,604 MT of C02 emissions annually. It is also expected to create about 380 jobs within the community.
Trish Ramos, head of HSBC Philippines Global Trade and Receivables Finance says, “HSBC’s trade facilities will help ensure unhampered progress in the completion of the Pagudpud Wind project providing timely access to credit to secure the plant’s primary components. HSBC is widely known in the market for its innovative products and sustainable financing solutions. We are very pleased to be playing a part in the growth of the Philippines’ emerging renewable energy sector.”
Pagudpud Wind is a wholly owned subsidiary of ACEN, the listed energy platform of the Ayala group. The company has over 3,000 MW of attributable capacity in the Philippines, Vietnam, Indonesia, India, and Australia. The company’s renewable share of capacity is at ~80%, among the highest in the region.
ACEN’s aspiration is to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 5,000 MW of renewables capacity by 2025. In October 2021, ACEN announced its commitment to achieve net-zero greenhouse gas emissions by 2050.
“We greatly value and appreciate HSBC’s support in making this project a reality. As one of the country’s largest wind farms upon completion, it will go a long way to meet the corporate and net zero goals of all the stakeholders, and the country’s energy security targets,” adds Jose Maria Zabaleta, ACEN Chief Development Officer.
Mimi Concha, Head of HSBC Philippines Wholesale Banking says “As part of HSBC’s sustainability agenda, we have always been on the lookout to support sustainability-related projects that will accelerate us and our clients in our journey towards a ‘Net Zero’ economy. We are delighted to hold hands with the Pagudpud Wind project team in delivering this green project into completion.”
HSBC has been doing business in the Philippines for over 146 years. The bank has a network of 8-strong branches located in Metro Manila, Cebu and Davao, including those of the locally incorporated HSBC Savings Bank.