Alternergy Holdings Corp. plans to spend P20 billion to construct 350 megawatts of renewable energy projects in the next three to five years.
“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 run-of-river hydro projects, solar projects and wind projects,” Alternergy president Gerry Magbanua said.
He said the total capex would be funded 70 percent by debt and 30 percent by equity.
“For the P20 billion, the equity is around P6 billion,” Magbanua said, adding that part of the funds from its initial public offering would be used to fund the projects.
Magbanua said the company’s strategy is to take in partners for its projects while retaining a majority stake of at least 51 percent or 50 percent plus one share.
“Our mantra is not to own 100 percent of these projects. We’ll be inviting partners to participate in the equity structure of these projects. Portion of that P6 billion maybe, P3 to P3.5 billion, is what Alternegy expects to fund for itself,” he said.
The company plans to develop 220 MW of onshore wind, 50 MW of run-of-river hydro and 33 MW of solar projects.
These projects include the 100-MW Tanay wind farm in Rizal, Palau and Bataan solar projects and run-of-river projects in Ifugao and Nueva Ecija.
“At the moment, that is really based on portfolio that we have…There’s a number of interested parties who want to partner with us in other technology,” Magbanua said.
Alternergy said it would sell its generation output through bilateral agreements and retail electricity supplier offtakers while participating in the Green Energy Auction Program.
The company’s IPO involves an offer of up to 1.150 billion in primary shares, representing 30.11 percent of Alternergy’s economic ownership, at an offer price of up to P1.48 per share.
Alternergy will also issue an over-allotment option for 15 million shares for a stabilization fund to be managed by BDO Capital, the joint Issue manager and joint lead underwriter.
The offer period started on Mar. 13, 2023 and would end on Mar. 17, 2023. The company will list on the Philippine Stock Exchange on March 24, 2023.
Investment Capital Corp. of the Philippines serves as sole issue coordinator, joint issue manager and joint lead underwriter, with Unicapital Inc. as co-lead underwriter.