HSBC Philippines has extended its first sustainable commercial letter of credit (L/C) to AC Energy Corp.

The Philippine-based developer will use the facility to partially fund the construction of a 160 megawatt (160MW) wind farm.

Largest wind farm

The L/C facility, the size of which has not been disclosed, will support the development of AC Energy's US$218.2 million Pagudpud project, which is expected to become the largest wind farm in the Philippines.

The 32-turbine plant is due online by the end of the year with full commercial operations commencing in 2023.

Green ambitions

AC Energy has more than 3,000 MW of power generating capacity in the Philippines, Vietnam, Indonesia, India and Australia.

The company, which is part of the diversified Philippines-based Ayala Group, is also developing an 18,000 MW renewable energy pipeline organically and with partners across the Asia Pacific.

HSBC has said it plans to achieve net zero in its operations and supply chain by 2030 and in its financial portfolio by 2050.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.