Alternergy loads up P2B for 762-MW buildout

Alternergy Holdings Corp. has raised P2 billion from its maiden fixed-rate notes issuance to help fund its next batch of renewable energy projects with a combined potential capacity of about 762 megawatts (MW).

The company said Tuesday proceeds will primarily support Liberty Solar, Kalandagan Solar, Alegria Wind and Tayabas North Wind, all awarded under the government’s fourth Green Energy Auction (GEA 4).

Part of the funds will also be used to pay existing loans and for other corporate purposes.

The notes were listed on the Philippine Dealing & Exchange Corp. (PDEx), marking Alternergy’s first entry into the local debt capital market.

Alternergy said demand exceeded the target issue size, with the offering oversubscribed by more than 125 qualified buyers. PhilRatings assigned the notes a PRS Aa Minus rating with a Stable Outlook.

“Our maiden issuance in the Philippine debt capital markets is an important milestone in Alternergy’s journey and reflects the strength of the platform we have built,” Alternergy Chairman Vincent Perez Jr. said.

“More than providing capital, this transaction allowed sophisticated investors to participate in our expanding Triple Play renewable portfolio, support the country’s energy security, and help accelerate the clean energy transition in light of recent energy disruptions in the Middle East. We were very pleased with BDO’s rapid book-building execution of our maiden Corporate Notes issue.”

BDO Capital & Investment Corp. served as sole issue manager and arranger.

“The strong investor demand for Alternergy’s maiden issuance exceeded the target issue size, which was oversubscribed by more than 125 QBs, reflecting investor confidence in its growth strategy and in the opportunities in Philippine renewable energy.

It also demonstrates the role our domestic capital markets can play in funding the country’s growth. We are pleased to support Alternergy as it continues to expand,” BDO Capital President Eduardo V. Francisco said.

Alternergy currently has 119 MW of operating capacity across the Philippines and Palau.

This is expected to rise to about 311 MW by the end of the year once its 128-MW Tanay Wind and 64-MW Alabat Wind projects begin commercial operations. Both projects were awarded under GEA 2.