State-run Government Service Insurance System (GSIS) has invested in publicly listed Alternergy Holdings Corp., a renewable power pioneer known for its profitability and clean energy vision.

In a statement on Tuesday, Nov. 7, the pension fund for government workers said a total of P1.45 billion was injected into Alternergy’s Perpetual Preferred Shares 2 Series A under a private placement.

GSIS, having to act as the foundation investor of Alternergy, would help the energy company push through its wind, solar, and hydropower projects.

Wick Veloso, GSIS president and general manager, said that the pension fund is committed to building a solid investment portfolio of infrastructure projects powered by renewable energy (RE).

“Alternergy's strategic collaborations with diverse stakeholders and their significant contribution to the Philippines' energy transition as a renewable energy pioneer makes them attractive to institutional investors such as GSIS,” Veloso said. 

He also explained that the investment has two main purposes that contribute to the nation’s goal of green energy.

“[Our] investment in renewable energy not only dovetails with the country’s National Renewable Energy Program but also provides a foundation for stable returns,” the GSIS chief added.

Vicente Perez Jr.,  Alternergy chairman, expressed his appreciation for the insurance institution’s subscription and for being a cornerstone investor of the energy corp.

“Their support will accelerate Alternergy’s roll-out of our Triple Play portfolio of wind, solar, and run-of-river, in line with the mission of GSIS in sustainable nation-building,” Perez said.

To have the company’s portfolio described as a triple play would mean that the stock must have simultaneously beat analyst expectations for its revenue and earnings which could attract earnings guidance in the future.

Gerry Magbanua, Alternergy president, also shared his insights on the GSIS’ allotment by bringing up the initial public offering (IPO) made last March, when they expected P1.87 billion worth of shares to fund the green energy projects.

“Following our IPO in March, the equity infusion from GSIS will significantly boost our equity base as part of our medium-term capital-raising program,” he mentioned.

According to Magbanua, a landmark offering has been arranged by the Investment & Capital Corp. of the Philippines (ICCP), Alternergy’s long-time financial advisor.

The ICCP is also the Financial Adviser and Sole Placement Manager for the private placement that coordinated with the GSIS. 

Valentino S. Bagatsing, chairman and chief of ICCP, chimed in and showed his support.

“We are proud and honored to continue to support Alternergy as an emerging renewable energy player, and very thankful to the GSIS for its continued support,” said ICCP chief.

To secure capital for Alternergy’s project pipeline, the energy corp has previously tackled back-to-back corporate finance activities.

This includes its stockholders' approval of the reclassification of its preferred shares into three series of non-voting perpetual preferred shares.

Alternergy also reached out to the capitals of Bank of the Philippine Islands (BPI), Rizal Commercial Banking Corp. (RCBC), and Security Bank (SB) to raise P12 billion worth of project finance structure.

These investment banks would help construct the Tanay and Alabat Wind Power Projects, which won under the Green Energy Auction 2 from the Department of Energy (DOE). (Gabriell Christel Galang)