Greenergy eyes P600M from private placement

MANILA, Philippines - Renewable energy firm Greenergy Holdings Inc. said it expects to raise more than P600 million through the sale of new shares to private investors.

The fresh capital will be used for the construction of a new biomass power plant in the Visayas, the company said in a disclosure.

Greenergy said it entered into an investment agreement with Cleantech Projekgesellschaft mbH,” a fund managed by the ThomasLloyd Global Asset Management (Switzerland) AG of Zurich.

Under the agreement, Cleantech will buy 20.776 million primary shares at P0.02 apiece, totaling P415.537 million.

“The proceeds of the investment shall be used by the company, thru a new subsidiary it will establish, to invest in the new biomass power plant of San Carlos BioPower Inc. in the Visayas,” Greenergy said.

“Additional subscription agreements for P252 million shall likewise be entered into and finalized by the company within 45 days from closing to complete the investment in the project,” it added.

In March, Greenergy’s board allowed the company to sign deals with government agencies and local government units for solid waste recycling and biomass generation projects.

Last month, Greenergy completed the sale of P25 million worth of shares to a foreign private equity fund Southern Field Ltd.

Proceeds of the fundraising will bankroll Greenergy’s investment in Isabela Alcogas Corp., which has an ethanol project in Misamis Occidental.

Greenergy is also in a joint venture with China-based Tianjin Tianbao for the construction of $1.3 billion worth of wind power projects with a total generating capacity of 1,000 megawatts (MW) in the Philippines in the next 10 years.

Initial investment will cost $200 million for a 49.5-MW wind energy project composed of 33 units of 1.5-MW wind mills.