MANILA, Philippines — Alternergy Holdings Corp. has wrapped up its maiden venture into the local debt market, raising P2 billion through the issuance of fixed-rate notes that drew strong investor demand.
The 1.5-year corporate notes, which carry a 7.75-percent annual interest, were listed on the Philippine Dealing and Exchange Corp. yesterday.
The offering was oversubscribed and exceeded its target issue size, with more than 125 qualified buyers participating and strong demand prompting the company to shorten the offer period.
“Our maiden issuance in the Philippine debt capital markets is an important milestone in Alternergy’s journey and reflects the strength of the platform we have built,” Alternergy chairman Vincent Perez Jr. said.
“More than providing capital, this transaction allowed sophisticated investors to participate in our expanding triple-play renewable portfolio, support the country’s energy security and help accelerate the clean energy transition in light of recent energy disruptions in the Middle East,” Perez added.
Alternergy tapped BDO Capital & Investment Corp. as the sole issue manager and arranger for the transaction.
BDO Capital president Eduardo Francisco said the maiden issuance reflects investor confidence in Alternergy’s growth prospects and the opportunities in the country’s renewable energy sector.
“It also demonstrates the role our domestic capital markets can play in funding the country’s growth. We are pleased to support Alternergy as it continues to expand,” Francisco said.
Proceeds from the issuance will be used to 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 transaction also gives the company an opportunity to pursue future capital market initiatives and diversify its funding sources for its triple-play strategy covering wind, solar and run-of-river hydro projects.
To date, Alternergy’s operating portfolio consists of 119 megawatts of projects across the Philippines and Palau. By the end of this year, its operating capacity is expected to almost triple to 311 MW.