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Alternergy reallocates IPO proceeds to accelerate wind projects

EditorAmbhini Aishwarya
Published 10/06/2023, 09:24 AM
© Reuters.

Manila-based Alternergy Holdings Corp. has made a strategic decision to reallocate PHP143 million ($2.8 million) of its IPO proceeds to expedite construction of its Tanay and Alabat wind power projects, according to the company's chairman Vicente Perez Jr. on Friday. The Tanay project will receive an additional PHP63 million, while the Alabat project will benefit from an extra PHP80 million. This move is in line with the company's aim for immediate construction activities by Q1 of 2025, under the timeline set by the second Green Energy Auction (GEA) program.

The funds were drawn from the Calavite and Tablas offshore wind projects (PHP55 million), and the Lamut Hydro Power Project (PHP88 million). Despite this reallocation, these projects will continue their pre-development activities, including permitting, securing endorsements, clearances, and initial technical studies.

In addition to the reallocated funds, the Tanay and Alabat projects were awarded P113 million and P100 million respectively in the GEA program. Alternergy President Gerry P. Magbanua emphasized that this reallocation would boost project funding as construction finances are being finalized.

To further support these ventures, Alternergy has engaged top-tier investment banks - BPI Capital, RCBC Capital and SB Capital - for a PHP12 billion fundraising activity. Magbanua confirmed the company's commitment to maintain engagement with the local community in Lamut as it continues its investment in pre-development activities for the Lamut hydropower project.

Alternergy's Chairman Vincent S. Perez confirmed their intent to proceed with immediate construction by Q1 2025, necessitating the IPO proceeds reallocation. This move follows Alternergy's IPO last March and precedes its first annual stockholders meeting (ASM) on December 13, where investors with a shared goal of promoting sustainability investments will convene.

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