Publicly-listed firm Alternergy Holdings Corporation has tapped three investment banks to raise P12 billion worth of loans to bankroll the company’s wind power projects to be sited in Rizal and Quezon provinces.

For the targeted fund raising activity, the pioneer renewable energy company had issued the mandate to local banks BPI Capital, RCBC Capital and SB Capital.

According to Alternergy President Gerry P. Magbanua, “the total P12 billion mandate would be the largest project financing deal to be undertaken by Alternergy.”

The support of the three banks, he said, raises confidence that “the transactions would yield the most benefit for the Tanay and Alabat wind power projects” - two key ventures won by Alternergy in the second round of Green Energy Auction (GEA) administered by the Department of Energy (DOE) in July this year.

The company expounded that “the three investment houses are expected to assist Alternergy 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.”

The selection of the three banks, the Filipino-led energy firm emphasized, had been firmed up following a competitive selection process.

By far, Alternergy Chairman Vincent S. Perez has sounded off the company’s enthusiasm 
“to work with these investment banks that will support us in expanding our green loan financing.”

He primarily highlighted that “we have been a long-term partner of RCBC Capital and equally excited to forge new partnerships with BPI Capital and SB Capital.”

Magbanua added “Alternergy and the three investment banks, as lead arrangers, are eager to proceed with the transaction to target financial closing by the end of the year.”

The blueprinted Tanay and Alabat wind farm installations have been among the pipelined greenfield projects that Alternergy will be pursuing next in the renewable energy investment space.

These wind farm projects shall be underpinned with 20-year power supply agreements (PSAs) based on the award granted by the energy department to the GEA winners.

Perez expounded “we are forging the path to a sustainable future and fully committed to support the National Renewable Energy Program (NREP) to increase the share of the clean energy generation mix to 35% by 2030 through our climate change mitigation business operations.”

Alternergy further noted that for its new wave of projects, it will be leaning on the strong track record it had already established being a pioneer in concretizing wind farm developments in the country since 2014.

Upon completion of construction and when the facilities finally reach commercial operations in 2025, the two wind generating assets would be able to yield 164 megawatts of additional capacity for the grid.

Perez reiterated “the two wind projects demonstrate Alternergy’s commitment to supporting the government’s renewable energy targets.”