Alternergy secures P2-b loan from BDO to fund RE projects
By Alena Mae S. Flores – May 30, 2024, 7:35 pm
from manilastandard.net
Alternergy Holdings Corp. said Thursday it signed a P2-billion green corporate loan agreement with BDO Unibank Inc. (BDO) to support the completion of three renewable energy projects.
“This marks the first issuance of our green corporate loan facility under Alternergy’s Green Finance Framework,” Alternergy president Gerry Magbanua said in a statement.
The loan is part of Alternergy’s capital funding strategy to support the timely construction of its renewable power projects, particularly the 112-megawatt Tanay and 64-MW Alabat wind power projects in the provinces of Rizal and Quezon, respectively, and the 28-MW Solana solar power project in Hermosa, Bataan.
The Tanay and Alabat wind projects are estimated to cost P9 billion and P7 billion, respectively while the Solana solar project has an estimated project cost of P1.6 billion.
The three new power projects will add 204 MW of new capacity by end-2025 towards achieving Alternergy’s accelerated growth trajectory and helping address the country’s power supply constraints.
“As a green corporate loan, Alternergy demonstrates our commitment to sustainability by strictly adhering to the international principles, guidelines and standards on green finance instruments,” Magbanua said.
He said BDO has been a long-time partner of Alternergy over the years in building its portfolio as a pure-play renewable company.
“We welcome once again BDO’s leading role in our innovative sustainability-linked financial instrument,” he said.
BDO Capital and Investment Corp. acted as mandated lead arranger for this transaction. Romulo Law served as the lender’s counsel and MVGS Law was the borrower’s counsel.
Alternergy is a renewable power pioneer with a portfolio of project companies engaged in different RE projects, particularly wind, run-of-river hydro, solar farm and commercial rooftop, battery storage and offshore wind projects
It aims to develop up to 474 MW of additional wind, solar and run-of-river hydro projects.
