Alternergy to issue P2 billion fixed-rate notes to support growth
Alternergy’s Board of Directors approved the company’s P2 billion fixed-rate notes issuance, marking the company’s maiden venture into the Philippine debt capital markets.
The 1.5-year notes, to be offered to Qualified Institutional Buyers (QIBs), received a very strong investment grade rating of PRS Aa Minus with a Stable Outlook.
Proceeds will primarily support the pre-development requirements of projects awarded under GEA 4, other projects in Alternergy’s development pipeline, and general corporate purposes.
The issuance supports Alternergy’s growing portfolio of wind, solar and run-of-river hydro projects, which is expected to expand from 119 MW to approximately 311 MW by end-2026, supported by the Tanay Wind and Alabat Wind projects.
Alternergy Holdings Corporation (PSE: “ALTER”), a Philippine pioneer in renewable power development, announced that its Board of Directors has approved the issuance of P2 billion green fixed rate notes. This is the company’s maiden issuance in the Philippine debt capital markets.
The notes will be offered to Qualified Institutional Buyers (QIBs) and will have a tenor of 1.5 years. The proceeds from the issuance will primarily support the pre-development requirements of Alternergy’s projects awarded under the Department of Energy’s (DOE) Fourth Green Energy Auction (GEA 4), as well as other projects in the company’s development pipeline. Proceeds may also be used for general corporate purposes, including the full payment of existing loans.
The issuance has received a very strong investment grade rating of PRS Aa Minus with a Stable Outlook.
The notes will bear interest at 7.75% per annum. Interest will be paid quarterly, while the principal will be repaid in full upon maturity.
“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,” said Gerry Magbanua, president of Alternergy Holdings Corporation. “It will strengthen our financial flexibility and provide additional resources to advance our expanding portfolio of renewable energy projects, particularly those awarded under GEA 4. As we continue to build our project pipeline, we are also laying the foundation for sustained growth and a stronger contribution to the country’s energy transition.”
BDO Capital & Investment Corporation has been appointed as the sole issue manager and arranger for the transaction. The notes will be listed on the Philippine Dealing & Exchange Corp. (PDEx).
The issuance underscores Alternergy’s continued focus on strengthening its capital structure while securing appropriate funding for the development of its expanding portfolio of renewable assets.
Alternergy continues to advance its Triple Play Portfolio strategy through a diversified renewable energy platform spanning wind, solar, and run-of-river hydro. This integrated mix is designed to build a balanced portfolio of complementary power generation and diversified revenue streams across varying seasonal conditions.
To date, the company has 119 MW of operating portfolio across the Philippines and the Republic of Palau. The company expects its operating capacity to increase to approximately 311 MW by end-2026, as its 128 MW Tanay Wind and 64 MW Alabat Wind projects advance toward commercial operations. Both projects were awarded under the DOE’s GEA 2.
On top of these two wind projects, Alternergy has a growing development pipeline with projects awarded under GEA 4, including Liberty Solar, Kalandagan Solar, Alegria Wind, and Tayabas North Wind, with a combined potential capacity of approximately 762 MW. The proceeds of the issuance will primarily be utilized to support these projects.
