Alternergy, which built Southeast Asia’s first commercial wind farm in the northern Philippines, is gearing up for an initial public offering next month to fund renewable energy projects with more than 1.2 gigawatts of combined capacity.
Co-founded in 2008 by former Philippine Energy Secretary Vince Perez, the company has raised 1.88 billion pesos ($1.88 billion) by selling up to 1.26 billion shares (including greenshoe options) at prices up to 1.48 pesos. It plans to raise as much as $34 million. The company is pushing ahead with his IPO as the peso rebounds from his 17-year low against the dollar following the recent rally in local stock markets.
Following recent regulatory approvals, Alternergy will begin the bookkeeping process this month and plans to list on the Philippine Stock Exchange by the end of March. “The IPO is a small step for us,” Perez said in a recent interview. Forbes Asia At his office in the Makati Central Business District. “We don’t want to over-dilute.”
Alternergy currently has 10 renewable energy facilities in operation that generate over 70 megawatts of electricity from hydro, solar and wind resources. The company plans to invest approximately P14.5 billion to build hydro and wind projects in Luzon, Philippines with a total capacity of over 156 MW over the next four years. To fund these projects, Perez said the company will tap into the green bond market.
“Going public is key to tapping the green bond market,” Perez said. Under Philippine regulations, institutional investors such as insurance companies and pension funds are only allowed to invest in green bonds of companies that are already publicly traded, he added.
The green bond will help finance Alternergy’s largest and most ambitious project, a 1,000 megawatt offshore wind farm it plans to build in partnership with British energy giant Shell.
Alternergy currently has 10 renewable energy facilities in operation that generate over 70 megawatts of electricity from hydro, solar and wind resources. The company built the country’s first commercial wind farm in the town of Bangui in Ilocos Norte province in northern Philippines. The facility was eventually sold to billionaire Jaime Zobel de Ayala’s AC Energy.
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