Listed Alternergy Holdings Corp. said Monday it tapped three investment banks as lead arrangers for a P12-billion project finance structure for the construction of two wind power projects.
Alternergy issued the mandate to BPI Capital Corp., RCBC Capital Corp. and SB Capital Investment Corp. after a competitive process.
The three investment houses will assist Alternergy in finalizing the terms and structure of the debt financing for the Tanay wind power project in Rizal province and the Alabat wind power project in Quezon province.
Alternergy won the Tanay and Alabat wind projects with a capacity of up to 164 MW under the Department of Energy’s (DOE) Green Energy Auction Program 2 (GEAP 2) held in July. The projects are expected to be completed by 2025.
“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 Perez Jr. said.
Alternergy established a strong track record of completing 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,” Alternergy president Gerry Magbanua said.
He said 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.
Perez said the two wind projects demonstrate Alternergy’s commitment to supporting the government’s renewable energy targets.
“We are forging the path to a sustainable future and fully committed to support the National Renewable Energy Program to increase the share of the clean energy generation mix to 35 percent by 2030 through our climate change mitigation business operations,” he said.