Alternergy reallocates IPO proceeds to wind farms

By Kris Crismundo

October 6, 2023, 7:47 pm

MANILA – Listed renewable energy firm Alternergy Holdings Corp. reallocated PHP143 million from its initial public offering (IPO) proceeds to two wind projects to ensure their timely start. 

Based on a document shared by Alternergy on Friday, its Tanay Wind Project is getting an additional PHP63 million from the initial budget of PHP50 million from the fundraising activity, while Alabat Wind Project will get an extra PHP80 million from the initial PHP20 million use of IPO proceeds.

“Tanay and Alabat Wind Power Projects are following a specific development timeline under GEA 2 (Green Energy Auction). Alternergy is fully intent to proceed with the activities leading to immediate construction by Q1 of 2025, and thus, the reallocation of the IPO proceeds,” Alternergy chairman Vicente Perez Jr. said in a disclosure to the Philippine Stock Exchange (PSE).

Some PHP55 million of the reallocated funds came from the budget of its offshore wind projects in Calavite and Tablas while another PHP88 million came from the Lamut Run-of-River Hydro Power Project.

Perez added that despite the transfer of initial funds to the two wind power projects, the Lamut hydropower project, as well as the Calavite and Tablas offshore wind farms, will continue their pre-development activities.

“Permitting and securing endorsements and clearances as well as conduct of initial technical studies would proceed,” he said.

“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,” the executive added.

Last Monday, Alternergy announced its three investment bank partners which will be the lead arrangers in raising PHP12 billion for the two wind power projects.

“The reallocation of proceeds will be a boost for now while the project funding for construction is bein finalized,” Alternergy president Gerry Magbanua said. (PNA)