Alternergy rechannels IPO money for wind projects

Due to the massive potentials of wind energy as a viable power source, listed renewable energy firm Alternergy Holdings Corp. is reallocating the proceeds of its initial public offering or IPO to provide additional financial support to two of its wind projects.

The company informed the Philippine Stock Exchange on Friday that its Board of Directors approved the plan to expedite the development of the projects.

Alternergy said the Tanay and Alabat Wind Power Projects, which won in the Green Energy Auction 2 of the Department of Energy, will receive increased funding from its maiden offering.

Specific development timeline

"Tanay and Alabat Wind Power Projects are following a specific development timeline under GEA 2. Alternergy is fully intent to proceed with the activities leading to immediate construction by the first quarter of 2025 and thus, the reallocation of the IPO proceeds," Alternergy chairperson Vicente Pérez Jr. said.

"The reallocation of proceeds will be a boost for now while the project funding for construction is being finalized," Gerry Magbanua, Alternergy president, added.

The IPO proceeds were supposedly for the Lamut Run-of-River Hydro Power Project and the Offshore Wind Power Projects.

Despite the changes, the company assured that pre-development activities for these projects would continue despite the lower budget.

"Permitting and securing endorsements and clearances as well as conduct of initial technical studies would proceed," Pérez said.

"We are already on the ground in Lamut, Ifugao engaging the local community while we are in more detailed technical studies for the offshore wind projects. As these activities progress, additional funds will be channeled to support the work programs," he added.

Three leading investment banks tapped

Alternergy announced last Monday it has tapped three leading investment banks — BPI Capital, RCBC Capital, and SB Capital — as lead arrangers to raise P12-billion project finance structure for the Tanay and Alabat Wind Power Projects.

Alternergy has been investing a significant amount to expand its clean energy portfolio. It aims to develop up to 1,245 MW of additional wind, offshore wind, solar and run-of-river hydro projects.

Alternergy was involved in the development of the 33-MW Bangui Bay wind farm in Ilocos Norte — the first commercial wind farm in Southeast Asia at that time.