ALTERNERGY Holdings Corp. announced on Monday that it intends to use some of the money raised from its initial public offering (IPO) for its two wind power projects in Rizal and Quezon provinces.

The company’s board of directors has approved the reallocation of P64.86 million from the IPO funds to its indirect subsidiaries Alternergy Tanay Wind Corp. and Alabat Wind Power Corp., according to a regulatory filing.

This is to support the upcoming construction of the 55-megawatt (MW) Alabat wind farm in Quezon and 86-MW Tanay wind farm in Rizal.

“[P64.86 million is] needed to be immediately deployed to the Wind SPVs (special purpose vehicle) to secure the issuance of a notice to proceed to the contractor for each wind project,” the company said.

The company allotted an additional P18.86 million for Tanay wind project and P46 million for the Alabat wind project. As of March 22,  the remaining budget is at P385.15 million.

Alternergy has awarded the construction contract for the projects to China Energy Engineering Group Guangdong Electric Power Design Institute Co. Ltd.

The construction of both projects is targeted to start by the second quarter of 2024 and is slated for completion by the end of 2025.

The Department of Energy awarded both projects their respective certificates of confirmation of commerciality, allowing the company to transition from the pre-development to the development stage.

Alternergy previously allocated funds from its IPO proceeds to finance projects including the Solana solar project, Ibulao mini hydro project, and Calavite and Tablas Strait offshore wind projects.

It has also previously allocated funds for working capital to operationalize its retail electricity supplier, Green Energy Supply Solutions.

The renewable energy company raised P1.62 billion from its IPO in March 2023.

Altenergy aims to develop up to 1,370 MW of renewable sources such as onshore and offshore wind, solar, and run-of-river hydropower projects.

At the local bourse on Monday, shares of the company went down by P0.01 or 1.32% to close at P0.75 each. — Sheldeen Joy Talavera