STATE PENSION fund Government Service Insurance System (GSIS) has subscribed to P1.45 billion worth of perpetual preferred shares of Alternergy Holdings Corp., the listed renewable energy company said on Tuesday.
“We are deeply honored to have GSIS as a cornerstone investor in Alternergy,” said Alternergy Chairman Vicente S. Pérez, Jr. in a media release.
He said the state agency’s support would hasten Alternergy’s rollout of its “triple play” portfolio of wind, solar and run-of-river projects, “in line with the mission of GSIS in sustainable nation building.”
The company said the subscription is through its Perpetual Preferred Shares 2 Series A via a private placement.
Alternergy President Gerry P. Magbanua said GSIS’ equity infusion “will significantly boost” the company’s equity base as part of its medium-term capital-raising program after its initial public offering (IPO) in March.
The company previously said it had allocated P720 million from the IPO proceeds to the predevelopment of six renewable energy projects with 183 megawatts (MW) of capacity covering wind, solar, and hydropower sources.
“Our growing commitment to sustainability propels us to build a solid investment portfolio of renewable energy (RE) infrastructure projects. Alternergy’s strong emphasis on RE complements and supports this commitment,” GSIS President and General Manager Jose Arnulfo A. Veloso said.
The energy company said Investment & Capital Corp. of the Philippines (ICCP) served as the financial adviser and sole placement manager for the private investment.
The private placement is targeted this year subject to certain regulatory approval by the Securities and Exchange Commission, it said.
“We are proud and honored to continue to support Alternergy as an emerging renewable energy player, and very thankful to the GSIS for its continued support,” ICCP Chairman and Chief Executive Officer Valentino S. Bagatsing said.
In October, Alternergy said that it had obtained shareholder approval for the reclassification of its preferred shares of about 1.48 billion in a move aimed at raising capital for various projects.
The shares will be subdivided into two classifications, namely: “Perpetual Preferred Shares 1” amounting to about 1.18 billion; and nonvoting “Perpetual Preferred Shares 2” for the remaining 300 million.
The 300 million shares are broken down into Series A, B, and C of 100 million perpetual preferred shares per series.
For the first half, Alternergy registered a consolidated net income of P38 million, reversing its P145.2 million net loss in the same period last year.
Alternergy is targeting to develop up to 1,370 MW of renewable energy sources such as onshore and offshore wind, solar, and run-of-river hydropower.
At the local bourse on Tuesday, shares of the company went up by two centavos or 2.41% to close at P0.85 apiece. — Sheldeen Joy Talavera