Alternergy plans P5-billion preferred share offer

ALTERNERGY Holdings Corp. plans to raise up to P5 billion through a proposed issuance of perpetual preferred shares to support funding for its renewable energy projects.

In a statement on Wednesday, the company said its board approved the filing of a shelf registration covering up to 50 million perpetual preferred shares priced at P100 apiece.

Alternergy plans to issue the shares in one or more series or tranches over five years, to be drawn from its unissued capital stock.

“Alternergy board decision to proceed with a shelf registration is a pivotal move given current market volatility brought about by the Middle East conflict,” Alternergy President Gerry P. Magbanua said.

A shelf registration allows companies to register securities for public offering without selling the entire amount immediately.

“A shelf registration will provide flexibility in future capital raising. We believe this is prudent approach than a full public offering in the near term,” Mr. Magbanua said.

Proceeds from any public offering under the shelf registration will fund the company’s pipeline of projects secured under the fourth Green Energy Auction round.

These projects have a combined capacity of up to 500 megawatts (MW) across Luzon, Visayas, and Mindanao. They include the Liberty floating solar project in Tarlac; the Kalandagan solar-plus-battery energy storage project in Tacurong City, Sultan Kudarat; the Alegri wind project in Cebu; and the Tayabas wind project in Quezon province.

Alternergy aims to expand its renewable energy portfolio to 1,000 MW by 2030. — Sheldeen Joy Talavera