Alternergy eyes P2 billion from notes offering

MANILA, Philippines — Alternergy Holdings Corp. is making its debut in the local debt market with the planned issuance of P2 billion worth of fixed-rate notes to expand its renewable energy portfolio.

The company’s board of directors has approved the capital-raising activity, with the notes to be offered to qualified institutional buyers.

The notes, which have a tenor of 1.5 years, will carry an annual interest rate of 7.75 percent, with interest payments to be made quarterly. The principal will be repaid in full upon maturity.

Proceeds from the offering will primarily bankroll the pre-development of Alternergy’s projects awarded under the government’s fourth green energy auction, as well as other projects in its development pipeline.

The funding may also be used for general corporate purposes, including the full repayment of existing loans.

“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,” Alternergy president Gerry Magbanua said.

Local debt watcher Philippine Ratings Services Corp. has assigned the issuance an investment-grade credit rating of PRS Aa- with a stable outlook.

The rating indicates that the debt issue is of high quality and subject to low credit risk, while a stable outlook suggests that the rating is likely to be maintained or remain unchanged over the next 12 months.

Alternergy has tapped BDO Capital and Investment Corp. as the sole issue manager and arranger for the transaction, with the notes to be listed on the Philippine Dealing and Exchange Corp.

To date, the company boasts an operating portfolio of 119 megawatts across the Philippines and Palau. By the end of this year, its operating capacity is expected to increase to 311 MW.