Alternergy Holdings Corp. plans to offer green bonds amounting to P2.5 billion in the next few months to finance the aggressive expansion of its renewable energy portfolio.
“We’re looking at P2 billion to P2.5 billion for green bonds, after the IPO [initial public offering],” Alternergy president Gerry Magbanua said.
He said the green bonds would be used to partly fund Alternergy’s P20-billion capital expenditure program in the next three to five years to build 350 megawatts of RE projects.
Magbanua said a portion of the IPO proceeds would be channeled towards the company’s equity participation in two projects. “For the other projects, we expect to also do capital raising from the capital market in the next few months. One of those initiatives is green bonds,” he said.
He said the timing of the green bond launch would coincide with the implementation of Alternergy’s projects.
“So we are ready when we implement the projects, and we have that source of equity to fund our participation,” Magbanua said.
He said of the P20-billion capex, 70 percent would be funded by debt and 30 percent by equity.
Alternergy’s target equity share in the projects is P6 billion, as it plans to take in partners 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 billion to P3.5 billion, is what Alternegy expects to fund for itself,” Magbanua said.
The company plans to develop 220 MW of onshore wind, 50 MW of run-of-river hydro and 33 MW of solar projects.
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 P1.48 apiece.
Alternergy will also issue an over-allotment option for 15 million shares f or 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 ended on Mar. 17, 2023. The company will list on the Philippine Stock Exchange on March 24, 2023.
Investment Capital Corp. of the Philippines is the sole issue coordinator, joint issue manager and joint lead underwriter, with Unicapital Inc. as co-lead underwriter.