ALTERNERGY Holdings Corp. plans to allocate 15 billion euros to finance the capital requirements for its projects, which have a combined capacity of at least 190 megawatts (MW).
“In terms of amount, 191 MW would probably require about P15 billion in capex (capital expenditures),” Alternergy President Gerry P. Magbanua said during a press conference on Thursday.
About 75% of capital requirements will come from debt, while 25% will come from equity. The funding will be used to cover additional capacity for two projects in the pre-development phase and one project expected to be completed in 2026.
“We continue to look at opportunities to raise money or raise capital, pending building more capacity on the ground,” Mr Magbanua said.
“Our DNA is that of a developer, so we continue to explore opportunities. But in addition to that possibility, we also need financing. That is why we are also very active in seeking opportunities to raise capital for the group,” he said.
The company previously announced that it had raised P20 billion in capital to finance the projects since its initial public offering in March last year.
The allocated funds will be used for four projects expected to be completed by 2025.
“We are confident and committed to advancing the target of 500 MW by 2026 as set,” Mr Magbanua said.
For fiscal year 2024, the company reported a consolidated net income of P130 million, nearly four times higher than last year’s P38 million.
The company attributed the increase to the increase in revenues, which grew by 60% to P275 million, mainly from the company’s assets.
“Alternergy achieved a strong performance for the second time in a row after our stock exchange listing. Our current assets contribute significantly to margins,” said Mr Magbanua.
“We expect that once the ongoing construction of the five projects is completed in 2025, Alternergy’s financial position will receive a substantial boost,” he added.
Alternergy aims to develop up to 500 MW of additional wind, solar and river hydro projects.
At the local bourse, the company’s shares rose 9.33% on Thursday to close at P0.82. — Heroes Joy Talavera