Philippines’ Alternergy issues $32m green notes in debt market debut

Financing will support projects with a combined potential capacity of 762MW.

Philippines-based Alternergy Holdings Corporation has approved the issuance of $31.85m (PHP2b) in green fixed-rate notes, marking its first entry into the country’s debt capital markets.

The notes will carry a 7.75% annual interest rate and a 1.5-year tenor, with interest paid quarterly and principal repaid in full upon maturity. The notes will be offered to Qualified Institutional Buyers.

The notes received a PRS Aa Minus rating with a Stable Outlook, which Alternergy described as a very strong investment grade rating.

Proceeds will support the pre-development requirements of Alternergy’s projects awarded under the Department of Energy’s Fourth Green Energy Auction (GEA 4), alongside other projects in its development pipeline.

The proceeds may also be used for general corporate purposes, including the full payment of existing loans.

BDO Capital & Investment Corporation has been appointed as the sole issue manager and arranger for the transaction.

Alternergy continues to advance its Triple Play Portfolio strategy through a renewable energy platform spanning wind, solar, and run-of-river hydro.

The company said the strategy aims to build a balanced portfolio of complementary power generation and diversified revenue streams across varying seasonal conditions.

Alternergy has 119 megawatts (MW) of operating capacity across the Philippines and the Republic of Palau.

It expects its operating capacity to increase to approximately 311 MW by end-2026 as its 128 MW Tanay Wind and 64MW Alabat Wind projects advance towards commercial operations. Both projects were awarded under the DOE’s GEA 2.

The company also has a development pipeline of projects awarded under GEA 4, including Liberty Solar, Kalandagan Solar, Alegria Wind, and Tayabas North Wind, with combined potential capacity of approximately 762 MW.

(US$1 = PHP62.79)