Alternergy plans P2 billion green notes issue for GEA-4 projects

Alternergy Holdings Corp. plans to raise P2 billion through its maiden green fixed-rate notes issue in the Philippine debt capital market. Proceeds will support pre-development of projects awarded under the government's fourth Green Energy Auction.

Renewable energy producer Alternergy Holdings Corp. plans to raise P2 billion through green fixed-rate notes to support its project pipeline. In a statement on Wednesday, the company said its board of directors had approved the issuance, which will mark its maiden offering in the Philippine debt capital market.

The notes will be offered to qualified institutional buyers and will mature in 1.5 years. They will carry an annual interest rate of 7.75 per cent, payable quarterly, while the principal will be repaid in full at maturity. Green notes are debt securities issued to raise funds for environmentally beneficial projects, including renewable energy developments.

Alternergy said the proceeds would support the pre-development requirements of projects awarded under the government's fourth Green Energy Auction (GEA-4), as well as other projects in its pipeline. “It will strengthen our financial flexibility and provide additional resources to advance our expanding portfolio of renewable energy projects, particularly those awarded under GEA-4,” Alternergy President Gerry Magbanua said. “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.

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

Alternergy currently operates 119 megawatts (MW) of capacity across its portfolio in the Philippines and Palau. Its operating capacity is expected to increase to 311 MW by yearend as its 128-MW Tanay and 64-MW Alabat wind farms are targeted to begin commercial operations. The company is targeting a renewable energy portfolio of 1,000 MW by 2030 under its Triple Play Portfolio strategy, which spans wind, solar, and run-of-river hydropower.

On Wednesday, shares in Alternergy fell by one centavo, or 1.39 per cent, to close at P0.71 apiece.