Alternergy to explore green bonds to fund RE projects
ALTERNERGY Holdings Corp. is planning to look into green bonds to fund its renewable energy (RE) projects, its top official said last week.
“One of the initiatives is green bonds. We hope to launch that in the next few months. We are aligning the timing of that in the implementation of our projects,” Alternergy President Gerry P. Magbanua told reporters in a recent gathering.
Mr. Magbanua said that Alternergy is looking at green bonds of up to P2.5 billion.
“We are ready when we implement the projects and we have that source of equity to fund our participation. Ballpark [figure] we’re looking at P2 [billion] to P2.5 billion for green bonds after IPO (initial public offering),” Mr. Magbanua said.
Green bond proceeds are meant to be exclusively used to finance or refinance eligible green projects that comply with regulatory standards.
The RE company is set to hold on March 24 an IPO of shares to raise up to P1.87 billion. Proceeds from the offering will fund the pre-development stage of projects in the pipeline.
Alternergy is planning to develop up to 1,370 megawatts (MW) of renewable energy sources such as onshore and offshore wind, solar, and run-of-river hydropower projects.
Mr. Magbanua said that the company is planning to develop up to 300-350 MW of renewable energy projects in the next five years.
To fund these projects, Mr. Magbanua said that Alternergy has set P20 billion worth of capital expenditures in the next five years. — Ashley Erika O. Jose
