Publicly listed Alternergy Holdings Corp. (Alternergy) has tapped three leading investment banks to arrange a P12-billion project finance structure for the construction of two wind power projects it won under the Green Energy Auction 2 (GEA 2) program last July.
Alternergy issued the mandate to BPI Capital, RCBC Capital and SB Capital after a competitive process. The three investment houses are expected to assist Alternergy in finalizing the terms and structure of the debt financing for the Tanay Wind Power Project in Rizal and Alabat Wind Power Project in Quezon.
“Alternergy is delighted to work with these investment banks that will support us in expanding our green loan financing. We have been a long-term partner of RCBC Capital and equally excited to forge new partnerships with BPI Capital and SB Capital,” Alternergy Chairman Vicente S. Pérez Jr. said.
Alternergy has established a strong track record of completing the construction of its renewable power projects through project financing schemes since 2014.
“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,” Gerry Magbanua, Alternergy President, said.
He added that Alternergy and the three investment banks, as lead arrangers, are eager to proceed with the transaction to target financial closing by the end of the year.
The Tanay and Alabat Wind Projects have a capacity of up to 164 MW and are expected to be completed by 2025.
Last March, the company said it need some 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,” Magbanua said.
He said 70 percent of the planned capex will be funded through debt and 30 percent via equity.