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Alternergy Holdings Corp. is entering the Philippine debt capital market with a ₱2-billion green notes issuance, with most of the proceeds set to support the development of renewable energy projects awarded under the government’s fourth Green Energy Auction.
The company said its board approved the issuance of 1.5-year fixed-rate notes to qualified institutional buyers. The securities will carry an annual interest rate of 7.75%, with interest payable quarterly and the principal due in full at maturity.
The issuance marks Alternergy’s first foray into the local debt market as the listed renewable energy company seeks additional funding for its expanding project pipeline.
“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.
“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,” he added.
Funding GEA 4 Projects
Most of the proceeds will go toward pre-development requirements for four projects that Alternergy secured under the Department of Energy’s GEA 4 program: Liberty Solar, Kalandagan Solar, Alegria Wind, and Tayabas North Wind.
The projects have a combined potential capacity of about 762 megawatts (MW).
The company said proceeds may also be used for other projects in its development pipeline and for general corporate purposes, including the full repayment of existing loans.
The notes have received a PRS Aa Minus investment-grade rating with a Stable Outlook and will be listed on the Philippine Dealing & Exchange Corp., or PDEx. BDO Capital & Investment Corp. has been appointed sole issue manager and arranger.
Expanding Operating Portfolio
The debt issuance comes as Alternergy works to expand its operating renewable energy capacity.
The company currently has 119 MW of operating capacity across the Philippines and the Republic of Palau. It expects this to rise to about 311 MW by the end of 2026 as two wind projects move toward commercial operations.
These include the 128-MW Tanay Wind project and the 64-MW Alabat Wind project, both of which were awarded under the DOE’s second Green Energy Auction.
The planned increase would add 192 MW to Alternergy’s current operating portfolio, strengthening its generation base as it develops additional projects from subsequent government auctions.
Apart from wind and solar, Alternergy has interests in run-of-river hydropower, utility-scale and commercial rooftop solar, and battery energy storage systems.
The company has described its strategy as a “Triple Play Portfolio,” combining wind, solar and run-of-river hydro to create a diversified renewable energy platform. The approach is intended to spread generation across different technologies and seasonal conditions while providing multiple sources of power and revenue.
Building Project Pipeline
The ₱2-billion issuance provides Alternergy with another source of funding as it moves projects from the auction-awarded stage toward development and eventual commercial operations.
For the GEA 4 projects, the proceeds will primarily support pre-development requirements, allowing the company to advance the projects before construction and generation.
Alternergy’s current expansion also reflects the government’s use of competitive auctions to bring additional renewable energy capacity into the country’s power system. The company’s GEA 2 awards are already contributing to its near-term capacity expansion through Tanay Wind and Alabat Wind, while its GEA 4 projects represent a larger pipeline for subsequent development.
Magbanua said the financing would provide additional resources as the company builds out its project portfolio and seeks sustained growth in the renewable energy sector.
Source:
https://business.inquirer.net/611417/alternergy-eyes-p2b-from-maiden-notes-issuance