GSIS invests ₱1.4 B in renewable energy

State-run Government Service Insurance System (GSIS) has invested in renewable energy firm Alternergy Holdings Corp. to speed up the development of wind power projects in Rizal and Quezon.

In a disclosure to the Philippine Stock Exchange on Tuesday, Dec. 19, Alternergy stated that the pension fund for government workers invested ₱1.45 billion by purchasing perpetual preferred shares in the energy company.

Gerry P. Magbanua, Alternergy president, thanked GSIS for the investment, which has provided enough support for the Tanay and Alabat wind projects to push their construction further.

“Alternergy has raised ₱3 billion in equity capital in the last nine months following our ₱1.62 billion initial public offering [IPO] in March this year,” Magbanua said.

“The proceeds from our recent capital raising activities position Alternergy to immediately start the next phase of development, in particular the construction of the Tanay and Alabat Wind Power Projects under the Green Energy Auction 2 (GEA 2) Program of the government,” he added.

Meanwhile, Alternergy made other corporate finance activities to secure the wind projects’ capital.

The BDO Capital & Investment Corp. (BDO Capital) was recently appointed as the Mandated Lead Arranger (MLA) for the ₱4-billion fixed and repriceable rate green funds.

Along with this, the Bank of the Philippine Islands (BPI) Capital, Rizal Commercial Banking Corp. (RCBC) Capital, and Security Bank (SB) Capital were also appointed as Alternergy’s lead arrangers to secure a ₱12-billion project finance structure.

This funding would be utilized for the construction and development of Tanay and Alabat Wind Power Projects.

Alternergy interests itself in different RE projects, such as wind, run-of-river hydro, solar and commercial rooftop, battery, and other offshore wind developments.

They hope to pursue up to 1,370 megawatts (MW) of renewable power.