Renewable power pioneer Alternergy Holdings Corp. is raising P12 billion to bankroll the construction of two wind power projects that would ramp up the local supply of renewable energy as mandated by the government.
In a stock exchange disclosure on Monday, Alternergy said BPI Capital, RCBC Capital and SB Capital will assist the company in finalizing the terms and structure of the debt financing for the two projects — Tanay Wind Power Project in Rizal and the Alabat Wind Power Project in Quezon.
The Tanay and Alabat Wind Projects have a capacity of up to 164 MW and are expected to be completed by 2025.
Winners of DoE's GEA-2
These projects won the Department of Energy or DoE's second round of the Green Energy Auction Program or GEA-2 last July. Under the GEA-2, winning bidders must make their committed capacities available.
The DoE conducts GEA yearly to fast-track the government's plan of integrating 35 percent renewable energy in the energy mix by 2030 and 50 percent by 2040.
Alternergy president Gerry Magbanua said the company and its partner banks will aim for financial closing before the year ends.
Largest project financing deal
"The total P12-billion mandate would be the largest project financing deal to be undertaken by Alternergy and we appreciate the support from RCBC Capital, BPI Capital, and SB Capital to ensure that the transactions would yield the most benefit for the Tanay and Alabat Wind Power Projects as laid out under the DoE's GEA 2 Program," Magbanua said.
Alternergy has been investing a significant amount to expand its clean energy portfolio. It aims to develop up to 1,245 megawatts or MW of additional wind, offshore wind, solar, and run-of-river hydro projects.
The total P12-billion mandate would be the largest project financing deal to be undertaken by Alternergy and we appreciate the support from RCBC Capital, BPI Capital, and SB Capital to ensure that the transactions would yield the most benefit for the Tanay and Alabat Wind Power Projects as laid out under the DoE's GEA 2 Program.
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.