GSIS invests P1.45B in Alternergy
Alternergy chair Vicente Perez Jr. (left) and Government Service Insurance System president and general manager Jose Arnulfo Veloso seal their investment deal with a handshake. —CONTRIBUTED PHOTO
MANILA -State-run pension fund Government Service Insurance System (GSIS) has invested P1.45 billion in renewable energy firm Alternergy Holdings Corp. to accelerate the development of the latter’s various clean energy projects.
GSIS on Tuesday subscribed to 100 million of Alternergy’s preferred shares at P14.50 apiece under a private placement, according to the company.
Private placements involve the direct sale of stocks to a private investor, as opposed to a public offering.
“We are deeply honored to have GSIS as a cornerstone investor in Alternergy. Their support will accelerate Alternergy’s roll-out of our triple play portfolio of wind, solar and run-of-river [hydropower], in line with the mission of GSIS in sustainable nation building,” Alternergy chair and former Energy Secretary Vicente Perez Jr. said in a statement.
GSIS president and general manager Jose Arnulfo Veloso also noted that the investment was part of their plans to build an investment portfolio of renewable energy infrastructure projects.
“Alternergy’s strong emphasis on renewable energy complements and supports this commitment,” Veloso said.
Investment and Capital Corp. of the Philippines served as the financial adviser and sole placement manager for the deal.
Issuance of the private placement is slated for later this year after the Securities and Exchange Commission’s approval.
Alternergy has been aggressively pursuing finance activities to secure capital for its project pipeline in recent months, as it plans on developing up to 366 megawatts of additional wind, solar, and run-of-river hydropower projects in the next three years.
Last month, Alternergy tapped investment banks BPI Capital, RCBC Capital and SB Capital as lead arrangers to raise P12 billion for two wind power projects under the government’s Green Energy Auction Program.
