Alternergy Holdings Corporation Raised P20 Billion in 15 Months to Fund New Projects

Since its initial public offering (IPO) in March 2023, renewable energy pioneer Alternergy Holdings Corporation (Alternergy) has raised P20 billion through capital raising activities over a 15-month period.

The goal of the capital-raising initiative is to finance the expedited construction of up to 204 MW of additional capacity, which is anticipated to be operational by 2025. These are the 64 MW Alabat Wind Power Project in Quezon, the 28 MW Solana Solar Power Project in Hermosa, Bataan, and the 112 MW Tanay Wind Power Project in Tanay, Rizal.

“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.
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A financing facility with the Bank of the Philippine Islands (BPI) and the Security Bank Corporation was closed early last week by Alternergy, through its wholly-owned subsidiary Alternergy Tanay Wind Corporation (ATWC), for up to P8 billion in funding for the construction of the Tanay Rizal Wind Power Project. Later on in the week, Alternergy strengthened its financial capacity to support the three new projects as a parent company by entering into a P2 billion Green Corporate Loan with BDO Unibank, Inc. (BDO).

A second tranche of the Green Corporate Loan and an additional P6.3 billion in new project finance are nearing completion. While the IPO raised P1.62, Alternergy raised P1.45 billion in November 2023 through the sale of preference shares. The total comes to P21 billion.

“We are grateful to the financing and investing community who have embraced ourinnovative funding solutions. The loans so far secured are under the Green Finance Framework we crafted with the Asian Development Bank (ADB), 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.
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According to Magbanua, Alternergy will continue to expand its project pipeline after completing these three initiatives. This covers the extension of solar rooftop electricity installations as well as the Liberty aqua-voltaic project in Tarlac. Furthermore, he stated that Alternergy is aggressively seeking early-stage ventures.

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

Alternergy Holdings Corporation  is a renewable power pioneer with a portfolio of project companies engaged in different RE projects, particularly wind, run-of-river hydro, solar farm and commercial rooftop, battery storage and offshore wind projects. With robust expansion plans in the next three years, Alternergy aims to develop up to 474MW of additional wind, solar, and run of river hydro projects. Alternergy’s management team is comprised of a pioneering group of RE advocates led by former energy secretary Vince Pérez, Gerry Magbanua, Knud Hedeager, Eduardo Martinez Miranda, Michael Lichtenfeld, Atty. Ina Arriola, Annette Rafael and Carmen Diaz.