GSIS investing P1.45 billion in Alternergy

By Alena Mae S. Flores – November 7, 2023, 8:15 pm
from manilastandard.net

Alternergy Holdings Corp. chairman Vince Perez (left) and Government Service Insurance System president and general manager Jose Arnulfo Veloso announce the pension fund’s P1.45-billion investment in the renewable energy company.

State-run pension fund Government Service Insurance System (GSIS) is investing P1.45 billion in Alternergy Holdings Corp. to support its renewable energy projects.

GSIS president and general manager Jose Arnulfo Veloso said the fund would subscribe to P1.45 billion worth of Alternergy’s perpetual preferred shares 2 series A under a private placement.

“Our growing commitment to sustainability propels us to build a solid investment portfolio of renewable energy (RE) infrastructure projects. Alternergy’s strong emphasis on RE complements and supports this commitment,” said Veloso.

“Alternergy’s strategic collaborations with diverse stakeholders and their significant contribution to the Philippines’ energy transition as a renewable energy pioneer makes them attractive to institutional  investors such as GSIS. Our investment in renewable energy not only dovetails with the country’s National Renewable Energy Program but also provides a foundation for stable returns,” he said.

Veloso said GSIS’s “dualpronged investment” underscores its dedication to meaningful and profitable investments for its pensioners, all the while contributing to the nation’s pursuit of clean energy objectives.

Target issuance of the private placement is later this year subject to certain regulatory approval by the Securities and Exchange Commission.

Alternergy chairman Vicente Perez Jr. said the company was “deeply honored to have GSIS as a cornerstone investor.”

“Their support will accelerate Alternergy’s roll-out of our Triple Play portfolio of wind, solar and run-of-river, in line with the mission of GSIS in sustainable nation building,” Perez said.

Alternergy president Gerry Magbanua said the equity infusion from GSIS would boost the company’s equity base as part of its medium-term capital raising program, following the company’s initial public offering in March.

“This landmark offering was strategically arranged and made possible by our long-time financial advisor, the Investment & Capital corporation of the Philippines,” said Magbanua.

Investment & Capital Corp. of the Philippines acted as the financial adviser and sole placement manager for the private placement.

Alternergy held back-to-back corporate finance activities to secure capital for its project pipeline.

Alternergy stockholders approved the reclassification of its preferred shares into three series of non-voting perpetual preferred shares in October.

The company tapped three investment banks including BPI Capital, RCBC Capital and SB Capital as lead arrangers to raise P12 billion in project finance structure for its Tanay and Alabat wind power projects that won under the Department of Energy’s  Green Energy Auction Program 2.