MANILA -Renewable energy firm Alternergy Holdings Inc. will reallocate P143 million of the funds raised from its initial public offering (IPO) for the development of two onshore wind projects it won in a Department of Energy (DOE) auction.
In a stock exchange disclosure on Friday, Alternergy said its board of directors had approved the reallocation of P63 million for the Tanay wind project in Rizal province and P80 million for the Alabat wind project in Quezon province.
This brings the total allocation coming from IPO proceeds for the Tanay and Alabat projects to P113 million and P100 million, respectively.
“[The] Tanay and Alabat wind power projects are following a specific development timeline under [the Green Energy Auction-2]. Alternergy is fully intent to proceed with the activities leading to immediate construction by the first quarter of 2025, and thus, the reallocation of the IPO proceeds,” said Alternergy chair and former Energy Secretary Vicente Perez Jr.
Reallocation
Alternergy won the projects through the second round of the Green Energy Auction, or GEA-2, held in July.
To recall, Alternergy raised P1.6 billion from its IPO in March. Of this total, P148 million was originally allotted for the development of offshore wind projects (P60 million) and the Lamut run-of-river hydroelectric project (P88 million).
However, a total of P55 million was reallocated from the funding meant for the offshore wind projects, while the entire P88 million for Lamut was redirected.
Alternergy did not disclose how it would replace the budgets taken from the two projects, but Perez clarified that predevelopment activities would still continue.
“Permitting and securing endorsements and clearances as well as conduct of initial technical studies would proceed … As these activities progress, additional funds will be channeled to support the work programs,” Perez said in a statement.
Alternergy president Gerry Magbanua said the amount reallocated for the Tanay and Alabat wind projects “will be a boost” while the company finalized project funding for construction.
Earlier this week, the company said it had tapped RCBC Capital, BPI Capital and SB Capital as lead arrangers for a P12-billion project financing it needed for the development of the Tanay and Alabat projects.