Alternergy Holdings Corp. said Friday its board approved the re-allocation of the initial public offering (IPO) proceeds intended for its offshore wind and hydro projects to advance the development of the Tanay wind project in Rizal and Alabat wind project in Quezon.
Alternergy said in a disclosure to the Philippine Stock Exchange it is re-allocating the entire budget allocation of P88 million for the Lamut hydro project to the 164-megawatt Tanay and Alabat wind projects.
Alternergy said a portion of the IPO proceeds amounting to P143 million which was originally intended for the development of the offshore wind projects (P55 million) would also be reallocated and used for the development of the Tanay and Alabat onshore wind projects, which both qualified under the recent Green Energy Auction – 2 of the Department of Energy.
The intended P60 million allocation from the IPO proceeds for the Calavite and Tablas offshore wind projects was reduced to P5 million, while the P55 million was reallocated to the Tanay and Alabat projects.
It said with the reallocation approved on Oct. 5, the Tanay wind project would have a budget of P113 million and the Alabat wind project would get P100 million.
“Tanay and Alabat wind power projects are following a specific development timeline under GEA 2. Alternergy is fully intent to proceed with the activities leading to immediate construction by first quarter of 2025, and thus, the reallocation of the IPO proceeds,” Alternergy chairman Vicente Perez Jr. said.
Perez said the pre-development activities for the Lamut run-of-river hydro power project and the Calavite and Tablas offshore wind projects would continue despite the decreased allocation.
“Permitting and securing endorsements and clearances as well as conduct of initial technical studies would proceed. We are already on the ground in Lamut, Ifugao engaging the local community while we are in more detailed technical studies for the offshore wind projects. As these activities progress, additional funds will be channeled to support the work programs,” he said.
Alternergy said last week it tapped three leading investment banks as lead arrangers for a P12-billion project finance structure for the construction of two wind power projects.
“The reallocation of proceeds will be a boost for now while the project funding for construction is being finalized,” Alternergy president Gerry Magbanua said.
Alternergy issued the mandate to BPI Capital Corp., RCBC Capital Corp. and SB Capital Investment Corp. for the terms and structure of the debt financing for the wind projects.