Alternergy Holdings Corp. plans to issue up to P2.5-billion green bonds to partly finance its plan to build up to 350 megawatts (MW) of renewable energy (RE) projects in the next three years to five years.
“We expect two capital-raising from the capital market in the next few months. One of that is green bonds. We hope to launch that in the next few months so that we are aligning the timing of that in the implementation of our projects,” Alternergy President Gerry P. Magbanua said. “We’re looking at P2 billion to P2.5 billion for green bonds after IPO [initial public offering].”
Alternergy is eyeing to list on the Philippine Stock Exchange on March 24. It will offer up to 1.150 billion in primary shares, representing 30.11 percent of the company’s economic ownership, at a maximum price of P1.48 per share.
The company will also issue an over-allotment option of up to 115 million shares for a stabilization fund to be managed by BDO Capital, the joint issue manager and joint lead underwriter.
For IPO proceeds, “we’re looking at P1.4 billion; there’s already specific uses for that,” Magbanua said. The executive was referring to the 6.8-MW Lamut-Asipulo hydropower project expected to start operations by 2024 and the 28-MW Solana power project in Bataan.
“We have a portion of use of proceeds from the IPO will be channeled towards our equity participation in Lamut and Solana projects,” Magbanua said.
Alternergy earlier announced a P20-billion capital expenditure (capex) for its planned 220 MW of onshore wind, 33 MW of solar and 50 MW run-of-river (ROR) hydro projects.
“For the entire group in the next three to five years, we’re looking at a total capex of P20 billion for the lineup of the projects we have. Alternergy is embarking on a triple play strategy where we’re looking at developing ROR hydro projects, solar projects and wind projects,” Magbanua said.
The capex will be financed by a combination of equity (30 percent) and project financing (70 percent), Magbanua added.
He said that the company is open for partnerships albeit retaining at least 51 percent or 50 percent plus one share in the renewable projects that it has lined up.
“There’s a number of interested parties who want to partner with us in other technologies,” he said. The company founded by former Energy Secretary Vicente S. Perez Jr. aims to build 1,245 MW of RE capacity in the next five years.