Alternergy eyes additional P15 billion to fund projects

MANILA, Philippines — Alternergy Holdings Corp. is planning to secure an additional P15 billion in fresh funds to boost the development of its renewable energy projects across the country.

“In terms of amount, 191 megawatts (worth of projects) would probably require around P15 billion of capital expenditure,” Alternergy president Gerry Magbanua told a press briefing.

He said the additional funding would be used to bankroll two projects in the pre-development stage and one project slated for completion by 2026.

“We will need to raise capital through debt and equity. And normally, once we implement a project, we typically do it on a project finance basis,” Magbanua said.

The funding will be composed of 75 percent debt and 25 percent equity.

“Our DNA is that of a developer, so we continue to explore opportunities. But hand in hand with that opportunity, we need to have funding. That is why we’re also looking at opportunities to raise capital as a group,” the official added.

Since its initial public offering in March 2023, Alternergy has raised about P20 billion in capital to fund these projects.

It recently secured P8 billion in loans from Bank of the Philippine Islands and Security Bank Corp., a P5.3-billion project facility from Rizal Commercial Banking Corp. and a P2-billion green loan with BDO Unibank Inc.

For the fiscal year ending June, Alternergy reported a net income of P130 million, a significant increase from the P38 million earned in 2023.

The growth was driven by a 60-percent increase in revenues to P275 million, particularly from its operating assets.

“Alternergy posted a strong performance for the second time in a row after our public listing. Our current operating assets are contributing significant margins,” Magbanua said.

The listed firm intends to beef up its renewable energy fleet, with five projects coming on stream as early as October next year.

This expansion aligns well with the company’s target of achieving a capacity of 500 MW by 2026.

“We expect that once the ongoing construction of the five projects is completed by 2025, there will be a substantial boost in Alternergy’s financial standing,” Magbanua said.