STATE-run pension fund Government Service Insurance System (GSIS) is investing P1.45 billion in Alternergy Holdings Corp. (PSE: Alter), according to the publicly-listed renewable energy (RE) firm.
Alter announced late Tuesday the subscription by the GSIS to P1.45 billion of the firm’s Perpetual Preferred Shares 2 Series A under a private placement.
“Following our IPO in March, the equity infusion from GSIS will significantly boost our equity base as part of our medium-term capital raising program. This landmark offering was strategically arranged and made possible by our long-time financial advisor, the Investment & Capital Corp. of the Philippines,” Alter President Gerry P. Magbanua was quoted in a statement as saying.
Alter has undertaken back-to-back corporate finance activities to secure capital for its project pipeline. Early this month, Alter stockholders approved the reclassification of its preferred shares into three Series of non-voting perpetual preferred shares. The company also tapped three investment banks—BPI Capital, RCBC Capital and SB Capital—as lead arrangers to raise P12 billion project finance structure for its Tanay and Alabat wind power projects that won under the Green Energy Auction 2. Target issuance of the private placement is later this year subject to certain regulatory approval by the Securities and Exchange Commission.
GSIS President and General Manager Jose Arnulfo A. Veloso said Alter’s strong emphasis on RE complements and supports its growing commitment to sustainability.
“Alter’s strategic collaborations with diverse stakeholders and their significant contribution to the Philippines’ energy transition as a RE pioneer make them attractive to institutional investors such as GSIS,” said Veloso.
Alter Chairman Vicente S. Pérez Jr. said the company is honored to have GSIS as a cornerstone investor, saying the support will accelerate the roll-out of Triple Play portfolio of wind, solar and run-of-river.
Alter shares closed higher at P0.8300 after opening at P0.8100 in Monday’s trade at the stock exchange.