Alternergy plans P15-b fund raising for green projects

By Alena Mae S. Flores – September 26, 2024, 8:30 pm
from manilastandard.net

Alternergy Holdings Corp. plans another capital-raising program amounting to P15 billion in the next few months for its renewable energy projects totaling 191 megawatts (MW).

“For the 191 MW, we will need to raise both equity and debt. Normally, once we implement a project, we typically do it in a project finance basis. So maybe around 75 percent will be from debt, and 25 percent equity. So both debt and equity we will be raising. In terms of amount, 191 MW would probably require around P15 billion,” Alternergy president Gerry Magbanua said.

Alternergy is one of the fastest-growing renewable energy developers in the country with a target of 500 MW capacity for completion by 2026.

“We had earlier set a goal of raising P20 billion in equity and debt capital within a five-year period. Instead, we did it in only 15 months, which paved the way for the accelerated construction of our projects,” Magbanua said.

“But this does not mean we paused. We will be building more projects, and this would require further capital raising,” he said

He said Alternergy raised P15.3 billion from May to June 2024.

The Tanay Wind Power Project secured P8 billion in project financing from Bank of the Philippine Islands (BPI) and Security Bank Corp., while the Alabat Wind Power Project obtained P5.3 billion in project finance facility from Rizal Commercial Bank Corporation (RCBC).

BDO Unibank Inc. (BDO) provided P2 billion in green corporate loan.

Alternergy also raised P1.62 billion from its IPO in March 2023 and another P1.45 billion from the sale of preferred perpetual shares in November 2023.

Alternergy chairman Vince Perez said the company achieved milestones in its growth trajectory in 2024.

“The development teams from our triple play portfolio [solar, wind and hydro] did tremendous jobs of pushing the projects all the way to construction phase in just one year. Five projects are now under construction with a combined capacity of 242 MW to be added to boost the country’s energy supply by end 2025,” he said.