Alternergy Holdings Corp. is raising P2 billion from its maiden debt market issuance, giving the renewable energy developer fresh funding to advance a project pipeline of more than 700 megawatts (MW) as it scales up its operating portfolio.

The company said Wednesday its board approved the issuance of P2 billion in green fixed-rate notes, which will primarily finance pre-development requirements for projects secured under the Department of Energy’s Fourth Green Energy Auction (GEA 4).

Other projects in Alternergy’s development line

Part of the proceeds may also be used for other projects in Alternergy’s development pipeline, general corporate purposes, and the full payment of existing loans.

The 1.5-year notes, which will be offered to qualified institutional buyers, will carry an interest rate of 7.75 percent per annum. Interest will be paid quarterly, with the principal due in full upon maturity.

The issuance received an investment-grade rating of PRS Aa Minus with a Stable Outlook.

Important milestone

“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,” Alternergy president Gerry Magbanua said.

“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. 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.”

Alternergy currently has 119 MW of operating capacity across the Philippines and Palau. It expects this to rise to about 311 MW by the end of 2026 as its 128-MW Tanay Wind and 64-MW Alabat Wind projects move toward commercial operations.

Both wind projects were awarded under GEA 2.

Four projects secured under GEA 4

Alternergy is also developing four projects secured under GEA 4 — Liberty Solar, Kalandagan Solar, Alegria Wind and Tayabas North Wind — with a combined potential capacity of about 762 MW.

The P2-billion fundraising will primarily support the development of these projects as Alternergy expands its portfolio across wind, solar and run-of-river hydro.