Renewable energy company Alternergy has tapped 3 investment banks to facilitate the raising P12 billion (about $211 million) for 2 wind projects, which is expected to be the largest financing deal of the company.
Alternergy Holdings Corp., the first IPO in Philippines in 2023, said it issued the mandate to BPI Capital, RCBC Capital, and SB Capital to finalize the terms and structure of the debt financing for the Tanay wind power project in Rizal and the Alabat wind power project in Quezon.
“We have been a long-term partner of RCBC Capital and excited to forge new partnerships with BPI Capital and SB Capital,” Alternergy chairman Vicente Pérez said.
Alternergy won the 2 wind power projects under the Green Energy Auction 2 (GEA 2) program. The Tanay and Alabat wind projects have a capacity of up to 164 MW and are expected to be completed by 2025.
“We are forging the path to a sustainable future and fully committed to support the National Renewable Energy Program to increase the share of the clean energy generation mix to 35 percent by 2030 through our climate change mitigation business operations,” he said.
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 5 years.
Philippines' renewable energy market is appealing to foreign investment as well. Denmark Ambassador to the Philippines Franz-Michael Mellbin said, Danish companies are eyeing to join the tender process to develop parallel grid primarily for offshore wind, which scale up to multi-billion dollars.
The Smart and Green Grid System（SGGS）, proposed by Philippines' Department of Energy, which shall be offered via public-private partnership（PPP）arrangement for 25 years, is expected to tap foreign investments up to P500 billion. The design of the parallel grid is currently being sorted with National Grid Corporation of the Philippines（NGCP）.
Under the latest Philippine Energy Plan (PEP), the offshore wind capacity that shall be integrated into the energy mix could top 50 GW by mid-century.
Besides, Denish government plans to firm up about 5 to 10 certifications that will be backed by International Labour Organization（ILO）and the International Renewable Energy Agency（IRENA）to upskill 50,000 Filipino workers in the flourishing renewable energy businesses.