BDO group pumps financial blood into renewable energy projects

Alternergy Holdings Corp. secured another local to finance the construction of its renewable energy projects, which are aligned with the government’s goals of increasing green energy supply in the country.

The company obtained a P2-billion green corporate loan from BDO Unibank Inc., with BDCO Capital & Investment Corp. as the mandated lead arranger for the transaction.

Prior to the said loan, Alternergy was granted P8-billion project financing by the Bank of Philippine Islands and Security Bank Corp., BPI Capital Corp, and SB CAPITAL Investment Corp handled the transaction.

Alternergy has tapped bank lending to build up coffers and realize its vision of establishing an additional 474-megawatt (MW) energy capacity via wind, solar, and run-of-river hydro projects in the next three years.

Studies made by Ember, a London-based think tank showed that the Philippines generated just 22 percent or below the global average of its electricity from renewables last year. Coal-fired power, which emits roe carbon emissions, has remained the primary source of energy in the country.

The Philippine government aims to increase the share of renewable energy to 27 percent by 2028.

Alternergy is set to build the 112-MW wind project in Tanay, Rizal.

For this project, the wind turbine supply contract was awarded to global technology firm Envision Energy, China Energy Engineering Group Guangdong Electric Power Design Institute Co., Ltd, and its local subsidiary were tapped for the plant engineering, procurement, and construction.

Alternergy is also developing the Alabat Wind Power Project in Quezon Province and the Solana solar facility in Bataan.

The RE company raised  P1.62 billion from its initial public offering in March last year. It earmarked P113 million of the proceeds for the Tanay wind project and some P100 million for the Alabat project.

During the first quarter of the year, Alternergy saw its net income soar by 173 percent to P27.85 million from P10.19 million a year ago. The growth was supported by revenues from the sale of electricity, nearly doubling to P82.31 million for the period.