Renewable energy firm Alternergy Holdings Corp. announced plans to borrow money for eco-friendly power projects recently awarded by the government to its subsidiaries.

In a disclosure to the Philippine Stock Exchange on Wednesday, Dec. 13, Alternergy said it plans to sell fixed-rate green bonds worth up to P4 billion as part of its capital-raising initiative. 

Alternergy has tapped Sy-led BDO Capital & Investment Corp. as the lead arranger for the transaction.

“The Board has authorized Management to discuss and negotiate on the terms of the Notes. The final terms and issuance of the Notes shall be subject to the approval of the Board,” Alternergy said.

The company plans to use the funds raised from the sale to finance renewable energy projects won by its subsidiaries through the Department of Energy’s (DOE) Green Energy Auction 2 (GEA 2) program.

Earlier, the DOE issued certificates of award (COA) to Alternergy Tanay Wind Corp.’s (ATWC) two wind power projects for winning bids in the GEA 2 program in July.

The certificates confirmed that Alternergy’s unit met the post-auction requirements under GEAP-2, including the posting of a performance bond.

“The confirmation by the DOE and subsequently the issuance of the COA is a critical milestone as it formally awards our two wind projects with 20-year off-take agreements with the National Transmission Corp. (TransCo) with a specific tarif,” Gerry Magbanua, Alternergy president SAID.

Magbanua also noted that the COA from the DOE is crucial for ATWC’s project lenders, who are close to completing their due diligence with a target financial closure by the first quarter of next year.

Additionally, ATWC carried out competitive bidding for equipment supply and construction contracts, with construction expected to start by the second quarter of 2024.