Alternergy plans ‘green’ bond debut
Local energy developer Alternergy Holdings Corp. is exploring “green bonds” as another way of raising funds to boost the coffers intended for renewable energy (RE) projects.
In an interview with the Inquirer, Alternergy chair Vicente Perez Jr. said the company would issue these bonds soon after hiking equity via its P2.2-billion initial public offering.
“There’s a lot of interest in green bonds,” said Perez, a former energy secretary. More details about this planned fund-raising would be disclosed by next year, he said.
Alternergy will work on its stock market debut, slated this year amid greater interest both from investors and underwriters.
“Many of them have approached us to [work on] the green bonds but I don’t want to appoint them yet. We will focus on the IPO,” said Perez.
“As a matter of fact, one of the few IBs (institutional buyers) that we met said we like equity for upside, but we also want to invest in your green bonds so we’ll have some interest income,” he added.
Green bonds refer to debt securities whose proceeds are earmarked for projects with clear environmental benefits.
The Securities and Exchange Commission already gave the green light for Alternergy’s public offering. It is now awaiting approval from the Philippine Stock Exchange.
The company is selling up to 1.47 billion shares—composed of 1.28 billion common shares and an overallotment option for another 192.2 million shares —at a maximum offer price of P1.48 per share.
BDO Capital & Investment Corp. and Investment & Capital Corp. of the Philippines were mandated as joint issue managers and joint lead underwriters for the offering.
Alternergy had disclosed that proceeds would be used for the following: pre-development expenses for projects in the pipeline, debt payment for acquiring Kirahon Solar Energy Corp., general corporate requirements and working capital to operationalize retail electricity supply.
So far, Alternergy has developed 67.24 megawatts (MW) of operating assets in wind and solar and with potential installed capacity of up to 1,369 MW renewables.
Just this month, the firm announced various partnerships to develop RE projects. These include the first offshore wind project in the Philippines with a potential capacity of up to 1,000 MW with Shell Overseas Investment B.V. in Mindoro and a run-of-river hydropower project in Ifugao with Exeter-Portofino Holding (Export) Holdings Inc., the holding company of civil society leader Sara Soliven de Guzman with a potential capacity of 6.8 MW. INQ
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