MANILA, Philippines — Renewable energy firm Alternergy Holdings Corp. is reallocating the use of P143 million proceeds from its initial public offering to further support the immediate development of its two wind power projects.
In a stock exchange filing, Alternergy said its board approved the change in the planned use of the money, which will now be reallocated for the development of two onshore wind projects it won during the second round of the green energy auction of the Department of Energy.
Alternergy debuted at the Philippine Stock Exchange as the year’s first initial public offering (IPO), raising a total of P1.61 billion.
A total of P143 million from the company’s IPO proceeds was originally intended for the development of offshore wind projects worth P55 million and the Lamut hydro project worth P88 million.
“After the reallocation on the use of the IPO proceeds, the total IPO proceeds to be used for the development of the Lamut hydro project and the offshore wind projects are nil and P5 million, respectively, while the Tanay wind project and Alabat wind project will have P113 million and P100 million, respectively,” Alternergy said.
The Tanay and Alabat wind projects have a capacity of up to 164 megawatts (MW) and are expected to be completed by 2025.
The two wind projects form part of Alternergy’s commitment to support the government’s renewable energy targets.
“The Tanay and Alabat wind power projects are following a specific development timeline under the Green Energy Auction 2 program. 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,” Alternergy chairman Vicente Pérez said.
Alternergy president Gerry Magbanua said the reallocation of proceeds would be a boost for now while the project funding for construction is being finalized.
Alternergy announced on Monday that it has tapped three investment banks – BPI Capital, RCBC Capital and SB Capital – as lead arrangers to raise P12 billion for the Tanay and Alabat wind power projects.
Perez, meanwhile, assured the public that the pre-development activities for the Lamut run-of-river hydro power project and the Calavite and Tablas offshore wind projects would continue despite the decreased allocation.
“Permitting and securing endorsements and clearances as well as conduct of initial technical studies will proceed,” Perez said.
“We are already on the ground in Lamut, Ifugao engaging the local community, while we are in more detailed technical studies for the offshore wind projects. As these activities progress, additional funds will be channeled to support the work programs,” he said.
Alternergy is a renewable energy company with a solid portfolio of project companies engaged in different renewable energy projects.
As part of its aggressive expansion plans, the company aims to develop up to 1,370 MW of additional wind, offshore wind, solar and run of river hydro projects in the next five years.
In a separate development, Alternergy said its board also approved the quasi-reorganization to wipe off the company’s deficit to be effected by applying a portion of its additional paid-in capital in the amount of P42.27 million to the company’s deficit as of June 30, 2023.
The company said the move is still subject to the approval of the Securities and Exchange Commission.