Alternergy Holdings Corp. will need P20 billion to bankroll its renewable energy (RE) projects under its expansion plan.
“For the entire group, in the next three to five years, we’re looking at a total capex [capital expenditure] of P20 billion for the lineup of the projects we have,” company vice president and CFO Gerry Magbanua said Tuesday.
The soon-to-be listed RE firm is planning to develop 220 megawatts (MW) of offshore wind power projects, 50MW of capacity from run-of-river projects, and 33MW solar power.
“In the next three to five years we’ll have representative projects for each of the technology and that’s part of the P20-billion capex,” added Magbanua.
He said 70 percent of the planned capex will be funded through debt and 30 percent by equity.
“For P20 billion, the equity is around P6 billion. Yes, just partial will come from (IPO).”
The company reduced the total offer size to P1.6 billion after pricing the shares for P1.28 each, lower than the maximum indicative price of P1.48 per share.
Part of the initial public offering (IPO) proceeds would be used to fund the pre-development activities of its pipeline of projects, which are mostly wind power.
Aside from the planned IPO, the company is looking at taking in strategic partners but it does not intend to give up majority control over its planned projects.
“Take note that for Alternergy, our mantra is not to own 100 percent of these projects. We’ll be inviting partners to participate in the equity structure of these projects…The goal is to have majority stakes in these projects, at least 51 percent or 50 percent plus one share,” said Magbanua, who added that a number of interested parties—both local and foreign—have already approach the company.
Recently, Alternergy bagged three additional offshore wind service contracts from the Department of Energy (DOE). Its wind arm Pililla AVPC Corp. (PACO) has been granted exclusive rights to explore, develop, and utilize wind resource in the wind-swept Tablas Strait separating Oriental Mindoro and Antique.
Last year, PACO was awarded a wind energy service contract over the Calavite Passage.
Alternergy is also co-developing the offshore wind power projects with Shell Overseas Investment B.V. as its strategic partner.