Alternergy eyes P15B more for renewables buildup

Alternergy Holdings Corp. is planning to further strengthen its financial muscle by raising an additional P15 billion intended to fire up nearly 200 megawatts (MW) of renewables capacity.

At a briefing on Thursday, Alternergy president Gerry Magbanua said the group would conduct more financing activities, with 75 percent of the estimated capital requirement sourced from banks, while the capital market would be tapped for the remaining 25 percent.

Magbanua said Alternergy was targeting to secure these fresh funds within this year or early 2025.

“We are developers. So we continue to explore opportunities. But hand in hand with that opportunity, we need to have funding. So that is why we’re also very active in looking at opportunities to raise capital for the group,” he told reporters in Makati City.

The realization of the 191 MW of power generation capacity, which would come from three projects, would help Alternergy hit its goal of hitting 500MW by 2026.

Currently, the company has 11 operating assets with an aggregate capacity of 86 MW. By 2025, 225 MW more would be added from completing four other developments.

Magbanua noted that the funding requirement for the 225 MW has already been “locked in.”

He reiterated that Alternergy’s aggressive portfolio buildup had the backing of financial groups, with the firm raising about P20 billion since going public in March last year.

Meanwhile, Alter also reported Thursday its record-high earnings, booking P130 million for the year ended June 2024, up from P38 million a year ago.

The group attributed this robust year to its strong revenues, which soared 60 percent to P275 million, fueled by its operating assets like the Palau Solar and battery energy storage system project.

Cash flow as measured by earnings before interest, taxes, depreciation, and amortization also jumped by 72 percent to P320 million against the previous P180 million.

The company’s five projects under construction include the 128-MW Tanay wind, 64-MW Alabat wind, 28-MW Solana solar, 4.6-MW Dupinga ROR (run of river), and 17.4-MW Kiangan ROR.