Alternergy uses IPO funds to buy wind power projects won at auction

MANILA – Renewable energy company Alternergy Holdings Inc. will reallocate P143 million in funds raised from its initial public offering (IPO) to develop two onshore wind projects it won in Department of Energy (DOE) auctions.

In a stock exchange disclosure on Friday, Alternergy said its board of directors has approved the reallocation of P63 million for the Tanay wind project in Rizal province and P80 million for the Alabat wind project in Quezon province.

This brings the total IPO proceeds allocation to P113 million and P100 million for the Tanay and Alabat projects, respectively.

“[The] The Tanay and Alabat wind power projects follow the following specific development schedule: [the Green Energy Auction-2]. Alternergy has every intention to continue activities with a view to commencing construction immediately before the first quarter of 2025, thereby reallocating IPO proceeds.


Alternergy won these projects through the second round of the Green Energy Auction (GEA-2) held in July.

Recall that Alternergy raised P1.6 billion in its IPO in March. Of this amount, P148 million was initially allocated for the development of offshore wind projects (P60 million) and the Lamut run-off hydroelectric project (P88 million).

However, a total of P55 million was reallocated from funds intended for offshore wind projects, while Lamut's entire P88 million was reallocated.

Alternergy did not disclose how it will budget to replace the two projects, but Perez clarified that pre-development activities will continue.

“Licensing and obtaining accreditations and permits will continue, as will preliminary technical studies… As these activities progress, additional funds will be allocated to support the work program,” Perez said in a statement.

Alternergy president Gerry Magbanua said the amount reallocated for the Tanay and Alabat wind projects “will be a boost” while the company finalizes funding for construction projects.

Earlier this week, the company said it had hired RCBC Capital, BPI Capital and SB Capital as lead arrangers to provide the P12 billion in project financing needed to develop its Tanay and Alabat projects.

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