Greenergy raises P25 million from private placement

MANILA, Philippines - Listed renewable energy firm Greenergy Holdings Inc. has raised P25 million from a foreign private equity fund.

In a disclosure, Greenergy said its board of directors approved the “subscription by Southern Field Ltd. (BVI) to P25 million worth of shares of the corporation at par value of P0.01 per share, equivalent to 2.5 billion shares.”

It also gave Greenergy president and CEO Antonio L. Tiu the authority to finalize the terms and conditions of the share sale. The shares will be listed on the local bourse.

Proceeds of the shares sold to Southern Field will be used to bankroll Greenergy’s investment in a local biofuel firm.

Early this week, Grerenergy said it is finalizing its entry into Isabela Alcogas Corp., which has an ethanol project in Misamis Occidental.

Greenergy will buy P25 million worth of shares in Alcogas, with an option to increase it to P50 million.

Alcogas engages in the manufacturing and trading of goods like ethanol and other biofuels.

Sister firm AgriNurture Inc. already bought P25 million worth of Greenergy shares early this week. Southern Field is a shareholder in AgriNurture.

Greenergy is in a joint venture with China-based Tianjin Tianbao for the construction of $1.3 billion worth of wind power projects with a total generating capacity of 1,000 megawatts (MW) in the Philippines in the next 10 years.

Initial investment will cost $200 million for a 49.5-MW wind energy project composed of 33 units of 1.5-MW wind mills. Tiu said the funds will be spent in the next six to eight quarters.

Greenergy is also looking at solar power, geothermal energy and hydroelectric power projects here and abroad.