Alternergy taps debt market for $32 million to fund 700MW pipeline
What's the deal? Alternergy Holdings Corp.Dealroom has a profile for this one. Try Dealroom → is raising P2 billion (about $32 million) through its first debt market issuance, giving the Philippine renewable energy developer fresh funding to advance a project pipeline of more than 700MW.
The company's board approved issuing P2 billion in green fixed-rate notes. The 1.5-year notes, offered to qualified institutional buyers, carry an interest rate of 7.75% per annum, with interest paid quarterly and principal due at maturity.
What's the endgame? Proceeds will primarily finance pre-development work for four projects secured under the Department of Energy's Fourth Green Energy Auction (GEA 4): Liberty Solar, Kalandagan Solar, Alegria Wind and Tayabas North Wind, with a combined potential capacity of about 762MW.
Part of the funds may also go toward other pipeline projects, general corporate purposes, and repaying existing loans. The issuance received an investment-grade rating of PRS Aa Minus with a Stable Outlook.
Why now? AlternergyDealroom has a profile for this one. Try Dealroom → currently operates 119MW across the Philippines and Palau. It expects this to reach about 311MW by the end of 2026 as its 128MW Tanay Wind and 64MW Alabat Wind projects, both awarded under GEA 2, near commercial operations.
“This maiden issuance in the Philippine debt capital markets marks an important milestone for Alternergy as we position the company for its next phase of growth,” president Gerry Magbanua said. He added that it would “strengthen our financial flexibility” to advance the GEA 4 portfolio.
The signal: The raise reflects Alternergy's move to diversify funding as it scales across wind, solar and run-of-river hydro. By tapping institutional debt for the first time, the developer is laying financial groundwork for what it calls a stronger contribution to the country's energy transition.
Read more: tribune.net.ph
Image credit: jblandscapes
