Alternergy gets board nod for loan deal

By Lenie Lectura – November 7, 2024
from Business Mirror

Alternergy Holdings Corp. (ALTER) has secured board approval of the convertible subordinated interest-bearing P4.4-billion loan agreement it forged with its subsidiary.

The agreement also has an option for conversion as additional subscription into Alternergy Wind Holdings Corp. (AWHC).

“ALTER’s financial support to AWHC in turn boosts its capacity to proceed with the ongoing constructions of the Alabat and Tanay Wind Power Projects as scheduled,” said Gerry P. Magbanua, president of ALTER.

The board also approved the declaration of dividends amounting to P40 million. This is the first dividend payment to be made by ALTER since its initial public offering in March 2023.

“The dividend declaration to holders of Perpetual Preferred Shares 2–Series A shares is in fulfilment of ALTER’s contractual obligations and affirms our commitment to creating and increasing value to our shareholders,” said Magbanua.

ALTER’s board gave its nod to the creation of a wholly-owned subsidiary that will serve as the shared services center of the company and its subsidiaries, in particular the accounting, human resource pool and legal and technical aspects.

The company said it channeled P1.5 billion in capital to the Tanay Wind Power Project and another P1.1 billion for the Alabat Wind Power Project. The company also infused a P340-million into the Hermosa Solar Power Project.

ALTER said it is optimistic that these projects will be completed next year. These projects will bring the company closer to achieving its capacity target of 500 megawatts.

Last month, ALTER subsidiary Alternergy Tanay Wind Corp. (ATWC) said it will undertake a project that will connect its 112-MW Tanay wind power project to the Luzon grid.

ATWC said it needs the prior approval of the Energy Regulatory Commission before it can proceed with the construction of the interconnection project, which will be undertaken by Power Construction Corp. of China Ltd.