AGGRESSIVE FUNDRAISING. Alternergy president Gerry Magbanua holds a press briefing at Alternergy Holding Corp.'s headquarters in Makati City on Monday (June 3, 2024). He said Alternergy has raised PHP20 billion in 15 months since its initial public offering in March 2023. (PNA photo by Kris M. Crismundo)
MANILA – Listed renewable energy (RE) company Alternergy Holdings Corp. has been aggressive in its fundraising activities to reach its goal of nearly 500 megawatts (MW) capacity of clean energy by 2026.
In a press briefing in its headquarters in Makati City, Alternergy chief financial officer Carmen Diaz shared that the company is securing at least PHP8.33 billion in project financing this month towards the second half of 2024.
For this month alone, the RE firm aims to seal the PHP5.33-billion Alabat wind power project financing and the PHP1-billion Solana Solar financing deal with local commercial banks.
The company also targets to secure a PHP2-billion second tranche of green corporate loan by the second half of 2024.
Alternergy president Gerry Magbanua said the company initially targeted to reach the PHP20-billion financing in three years but was able to secure these funds within 15 months since its initial public offering (IPO) in March last year.
Magbanua noted that since the 86-MW Tanay Rizal Wind Power Project and the 55-MW Alabat Island Wind Power Project won the bid in the Green Energy Auction 2 (GEA 2) Program on July 3, 2023, the company accelerated its fundraising activities despite higher interest rates to deliver these projects next year.
“The opportunity has changed when we were awarded the Green Energy Auction Program… We said we’re going to deliver them in 2025, so we need the funding, and hence, we worked hard enough and hand-in-hand with the banking community,” he said.
Diaz, meanwhile, added that the GEAP award has provided confidence among lenders to back the company’s projects.
“One of the considerations that lenders are looking for is we’re able to secure an off-taker. So, with GEA, it’s secured an off-taker, and not only that, it’s with the government, so it gave them security,” she said.
Of the PHP20 billion fund it raised, Magbanua said the company is allocating PHP10 billion for the Tanay wind project, about PHP7 billion for the Alabat project, and PHP1.3 billion for the Solana project.
“Alternergy’s initial capital raising activity since the IPO in March 2023 is almost at the homestretch. The PHP20 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,” Magbanua added. (PNA)
