Alternergy inks P5.3 billion loan with RCBC

MANILA, Philippines — Renewable power firm Alternergy Holdings Corp. (AHC) has signed a P5.3-billion loan with a local bank to partially fund the development of a 64-megawatt (MW) wind project in Quezon province.

In a regulatory filing, AHC said its unit, Alabat Wind Power Corp. (AWPC), secured the project finance facility from Yuchengco-led Rizal Commercial Banking Corp. (RCBC).

AWPC is a wholly owned subsidiary of Alternergy Wind Holdings Corp., the wind sub-holding arm of AHC.

“We are very pleased to finally sign the loan agreement for the project finance facility for our Alabat Wind Power Project after a very thorough due diligence period against a very tight timeline,” AHC president Gerry Magbanua said in a statement.

He said the latest borrowing, the largest financing facility extended by RCBC to the Alternergy Group since 2014, demonstrated the firm’s ability to undertake renewable energy (RE) projects.

The project financing was said to be aligned with the RE firm’s capital-raising initiatives under the green finance framework.

Maria Carmen Diaz, AHC CFO and chief sustainability officer, said the company has so far raised P18.4 billion out of its P21 billion capital-raising program.

AHC is looking to close more financial deals this year to beef up the rollout of its project portfolio to 500 MW by 2026, Diaz said.

A winner of the Department of Energy’s Green Energy Auction 2 Program, the Alabat wind project is expected to boost the country’s power supply by contributing new generating capacity by next year.

AHC said the ground mobilization of the project is ongoing following the start of construction last month.

A renewable power pioneer, the company has a portfolio of clean energy projects, including wind, run-of-river hydro, solar farms and commercial rooftops, as well as battery storage and offshore wind projects.

It is also embarking on a three-year plan to develop up to 474 MW of additional wind, solar and run-of-river hydro projects.