The board of directors of renewable energy pioneer Alternergy Holdings Corporation has given go-signal on the reallocation of substantial portion of its initial public offering (IPO) proceeds to bankroll the construction of its two major wind power projects.

With that decision, the company conveyed that the funding for its 140-megawatt Tanay and 55MW Alabat wind farm developments in the Luzon grid will be shored up.

The two projects are underpinned by long-term power supply agreements (PSAs) based on the awards bestowed by the Department of Energy (DOE) on the capacities won by Alternergy in the second Green Energy Auction (GEA) program that was carried out in July this year.

“The Tanay and Alabat wind power projects, which won in the Green Energy Auction 2 of the DOE, will receive increased funding from the previously disclosed use of IPO proceeds” Alternergy stressed.

As culled from documents, the total  proceeds funneled into the Tanay wind farm venture hovered at P113 million – comprising of the initially targeted budget use of  P50 million, plus the reallocation of P63 million.

For the Alabat wind farm installation, the re-aligned budget  had been at P100 million, and that accounted for the initially propounded budget use of P20 million; then there was reallocation of P80 million.

The move to boost funding for the wind farm projects followed an earlier decision to also funnel investments from IPO proceeds into the company’s 6.8MW Lamut run-of-river hydropower project; as well as targeted Calavite and Tablas offshore wind projects that may eventually yield gigawatt-scale capacities.

According to Alternergy President Gerry P. Magbanua, “the reallocation of proceeds will be a boost for now while the project funding for construction is being finalized.”

To note, the company just made its formal announcement this week that it has engaged top-tier investment banks - BPI Capital, RCBC Capital and SB Capital – to lead arrange the targeted P12 billion fund raising activity for its Alabat and Tanay wind farm ventures.

Given the strict timeline enforced by the DOE on capacity deliveries for the GEA-awarded projects, Alternergy Chairman Vincent S. Perez noted that their company “is fully intent to proceed with the activities leading to immediate construction by first quarter of 2025,” adding that such was the compelling reason for the reallocation of the IPO proceeds.

The company chairman similarly indicated that “the  pre-development activities for the Lamut run-of-river hydro power project and the Calavite and Tablas offshore wind projects would continue despite the decreased allocation. “

Perez expounded that for these projects, “permitting and securing endorsements and clearances as well as conduct of initial technical studies would proceed.”

For the firm’s Lamut hydropower project, it is now in the process of securing firm community consent on its development plan; and on parallel, more detailed technical studies are being advanced on the planned offshore wind farm developments.

“As these activities progress, additional funds will be channeled to support the work programs,” the top company executive pointed out.

In a related development, Alternergy declared that it will be holding its first annual stockholders meeting (ASM) on December 13 this year.

“We are looking forward to the ASM to meet all our stockholders. Alternergy’s IPO last March brought together foreign and local investors from all walks of life who have a shared goal of promoting sustainability investments,” Perez said.