Renewable power pioneer Alternergy Holdings Corp. has secured up to P4 billion in fresh funding facility from Bank of the Philippine Islands (BPI) for the construction of 128-megawatt Tanay Wind Power Project in Tanay, Rizal.
Alternergy said Wednesday in a disclosure to the stock exchange Tanay Wind Power Project has been qualified one of the eligible assets to be financed by the green bond issued by BPI with support from the International Finance Corporation (IFC), a member of the World Bank Group.
“We are delighted that the Tanay Wind Power Project is recognized as a core asset under the BPI- IFC Green Bond. This is our first project finance transaction with BPI. Throughout negotiations and due diligence, we witnessed a significant alignment of values and commitment towards sustainability between Alternergy and BPI,” said Alternergy president Gerry Magbanua.
“We look forward to nurturing this green collaboration with BPI and its funding partners,” Magbanua said.
BPI also named the Tanay Wind Power Project as the first asset to successfully incorporate BPI and IFC’s environmental and social management provisions in the facility agreement.
This is consistent with Alternergy’s Green Finance Framework which was recently adopted through technical assistance from the Asian Development Bank (ADB).
BPI head of institutional banking John-C Syquia also expressed optimism in the maiden partnership with Alternergy.
“Alternergy’s management has brought to commercial operations pioneering projects over the years. BPI is proud to support Alternergy as it now embarks on bigger projects. The Tanay Wind Power Project is its largest project to date and promises to bring bigger positive impact to the country, the society and the environment,” he said.
Jane Yuan Xu, IFC acting country manager for the Philippines said the investment reflects the group’s commitment to accelerating the energy transition in the Philippines,.
“The banking industry will be crucial to these efforts, and we hope this project catalyzes more investments in renewable energy that will help the country achieve its climate goals,” she said.
Alternergy through its unit Alternergy Tanay Wind Corp. (ATWC) secured up to P8 billion syndicated term loan facility for the Tanay Wind Power Project in May, with BPI as co-lender.
Construction of the Tanay Wind Power Project is currently in full swing and expected to be completed by end 2025.
The renewable energy capacity from the Tanay Wind Power Project will help accelerate the government’s goal of energy transition and contribute to the target of 35 percent renewable energy share by 2030 and 50 percent by 2040.
