Alternergy taps 3 investment banks to raise P12 billion

Philippine Tribune
Philippine Tribune

Richmond Mercurio – The Philippine Star

October 3, 2023 | 12:00am

MANILA, Philippines — Renewable energy firm Alternergy Holdings Corp. is looking to secure its largest project financing deal as it taps three investment banks to raise P12 billion for the construction of its two wind power projects.

Alternergy, in a stock exchange filing, said it issued the mandate to BPI Capital, RCBC Capital, and SB Capital after a competitive process.

Alternergy said the three investment houses would assist the company in finalizing the terms and structure of the debt financing for the Tanay wind power project in Rizal and Alabat wind power project in Quezon.

“Alternergy is delighted to work with these investment banks that will support us in expanding our green loan financing,” Alternergy chairman Vicente Pérez said.

“We have been a long-term partner of RCBC Capital and equally excited to forge new partnerships with BPI Capital and SB Capital,” he said.

Alternergy president Gerry Magbanua said the P12 billion mandate would be the largest project financing deal to be undertaken by the company.

Magbanua said Alternergy and the three investment banks, as lead arrangers, target financial closing by the end of the year.

“We appreciate the support from RCBC Capital, BPI Capital and SB Capital to ensure that the transactions would yield the most benefit for the Tanay and Alabat wind power projects, as laid out under the Department of Energy’s GEA 2 Program,” he said.

Alternergy won the two wind power projects under the Green Energy Auction 2 (GEA 2) program in July.

The Tanay and Alabat wind projects have a capacity of up to 164 megawatts (MW) and are expected to be completed by 2025.

Perez said the two wind projects form part of Alternergy’s commitment to support the government’s renewable energy targets.

“We are forging the path to a sustainable future and fully committed to support the National Renewable Energy Program to increase the share of the clean energy generation mix to 35 percent by 2030 through our climate change mitigation business operations,” he said.

Alternergy has established a strong track record of completing construction of its renewable power projects through project financing schemes since 2014.

The company debuted at the Philippine Stock Exchange as the first initial public offering this year, raising a total of P1.61 billion.

It is a renewable energy company with a solid portfolio of project companies engaged in different renewable energy projects.

As part of its aggressive expansion plans, the company aims to develop up to 1,370 MW of additional wind, offshore wind, solar and run of river hydro projects in the next five years.

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