Alternergy eyes P2B from maiden notes issuance

Alternergy Holdings Corp., a listed renewable energy company, is making its debut in the debt market to raise P2 billion, as it rolls out more clean power facilities.

The company on Wednesday said its board of directors had given the go-ahead to issue green fixed-rate notes worth P2 billion.

It said the notes would be offered to qualified institutional buyers. They would have a tenor of 1.5 years and carry a rate of 7.75 percent per year.

The group has tapped BDO Capital & Investment Corp. as the sole issue manager and arranger for the transaction. The notes will be listed on the Philippine Dealing & Exchange Corp. or PDEx.

“This maiden issuance in the Philippine debt capital markets marks an important milestone for Alternergy as we position the company for its next phase of growth,” said Gerry Magbanua, president of Alternergy Holdings Corp.

Magbanua said in a statement this is expected to strengthen the firm’s financial flexibility and provide additional resources to advance its expanding portfolio of renewable energy projects, particularly those awarded under the Green Energy Auction or GEA-4.

“As we continue to build our project pipeline, we are also laying the foundation for sustained growth and a stronger contribution to the country’s energy transition,” he added.

The projects that won during the government’s GEA-4 include Liberty Solar, Kalandagan Solar, Alegria Wind and Tayabas North Wind. These have a combined capacity of 762 megawatts (MW).

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At present, Alternergy has 119 MW of operating capacity across the Philippines as well as in Palau.

The company expects its operating capacity to increase to about 311 MW by end of 2026, as its 128-MW Tanay Wind and 64-MW Alabat Wind projects advance toward commercial operations.

Aside from solar and wind power, it also has interests in run-of-river hydro, utility-scale and commercial rooftop, and battery energy storage systems (BESS). BESS allows renewable energy producers to store excess generated electricity and release it when demand surges.