Alternergy raises P20 billion to fund 204-MW projects

Renewable power pioneer Alternergy Holdings Corp. (Alternergy) said it raised over P20 billion in 15 months since its initial public offering (IPO) in March 2023.

This capital is aimed to fund the accelerated construction of up to 204 megawatts (MW) of new capacity targeted to come online by 2025, which are the 112 MW Tanay Wind Power Project in Tanay, Rizal, the 64 MW Alabat Wind Power Project in Quezon, and the 28 MW Solana Solar Power Project in Hermosa, Bataan.

Of the P20 billion, the bulk of the P10 billion will go to the Tanay project, P7 billion to the Alabat project, and P1.3 billion to the Solana project.

"Alternergy's initial capital raising activity since the IPO in March 2023 is almost at the homestretch. The P20 billion funding will support the timely completion of new generation capacities to contribute to the government's target to increase renewable energy share and help beef up the country's power supply situation" Gerry P. Magbanua, president of Alternergy said.

The firm last week, through its wholly-owned subsidiary Alternergy Tanay Wind Corporation, closed a financing facility with the Bank of the Philippine Islands and the Security Bank Corporation for up to P8 billion to fund the construction of the Tanay project.

It also signed a P2 billion Green Corporate Loan with BDO Unibank, Inc. to beef up its funding capacity in supporting three new projects as a parent company.

Additional P6.3 billion of new project financing are in the final stages and a 2nd tranche of the Green Corporate Loan is also being finalized.

In November last year, Alternergy raised P1.45 billion in preferred shares issuance while the IPO raised P1.62 billion, rounding up to P21 billion of funding raised over 15 months.

"We are grateful to the financing and investing community who have embraced our innovative funding solutions. The loans so far secured are under the Green Finance Framework we crafted with the Asian Development Bank, while our inaugural IPO had been successful even in the amidst volatile market sentiments," Mr. Magbanua said.

"Once the final signings of the remaining P6.3 billion are done, we expect to go back to the drawing board to further plan for the next round of capital raising activity to reach our medium-term target of 500 MW capacity by 2026," he added.

Meanwhile, the firm is set to raise at least $360 million for its 2026 projects such as the 94 MW Sembrano Wind Project, Magbanuad said.

Alternergy is also eyeing new projects in its pipeline which includes the Liberty aqua-voltaic project in Tarlac and the expansion of the solar rooftop power projects.

"As the development of these new projects progresses, new capital raising program wil also take off. Alternergy is focused on building more renewable and sustainable energy projects," he said.