Home Top News Alternergy gets P2-billion loan to finance RE projects

Alternergy gets P2-billion loan to finance RE projects

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ALTERNERGY Holdings Corp. on Thursday said it had signed a deal with BDO Unibank, Inc. for a P2-billion green corporate loan that will finance its renewable energy (RE) projects.

The company’s board approved the financing, which can be increased to as much as P4 billion, on May 7, it said in a statement.

“As a green corporate loan, Alternergy demonstrates our commitment to sustainability by strictly adhering to the international principles, guidelines and standards on green finance instruments,” Alternergy President Gerry P. Magbanua said in the statement.

BDO acted as the lead arranger for the transaction, while Romulo Law acted as the lender’s counsel and MVGS Law acted as the borrower’s counsel.

“BDO has been a long-time partner to Alternergy over the years in building our portfolio as a pure-play renewable company,” Mr. Magbanua said.

Alternergy said the loan is part of its capital funding strategy “to support the timely construction of its renewable power projects.”

This includes the Tanay and Alabat Wind Power projects in the provinces of Rizal and Quezon, respectively, as well as the Solana Solar Power project in Hermosa, Bataan.

The three projects are expected to add up to 204 megawatts (MW) of capacity by the end of next year.

Its unit Alternergy Tanay Wind Corp. earlier obtained loans from Bank of the Philippine Islands and Security Bank Corp. worth P8 billion to fund the construction of its 112-MW wind project in Tanay.

Alternergy seeks to develop up to 474 MW of additional wind, solar and run-of-river hydropower projects in the next three years.

It shares fell by a centavo to P0.67 each. — Sheldeen Joy Talavera

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