PASAY CITY — The Government Service Insurance System (GSIS), a state-run pension fund, has entered the renewable energy sector with a PHP1.45 billion investment in preferred shares of Alternergy Holdings Corporation.
According to Philippines News Agency, GSIS subscribed to Alternergy's Perpetual Preferred Shares 2 Series A through a private placement. The signing ceremony was attended by GSIS president and general manager Jose Arnulfo Veloso and Alternergy chair Vince Pérez Jr. at the GSIS headquarters.
Veloso conveyed that GSIS is increasing its focus on sustainability and is actively expanding its investment portfolio in renewable energy infrastructure. This move aligns with the National Renewable Energy Program's goals, and Alternergy's vision for growth in renewable energy projects is a key factor in this partnership.
The investment, as Veloso stated, is expected to yield stable returns and reinforces GSIS' support for the publicly listed firm's future endeavors in the renewable energy sector.
Pérez expressed gratitude for GSIS's commitment, emphasizing that the pension fund's backing will boost Alternergy's implementation of its Triple Play portfolio, which includes wind, solar, and run-of-river projects.
Additionally, Alternergy president Gerry Magbanua noted that the GSIS's financial contribution would solidify the company's equity base as part of a broader capital raising initiative aimed at enhancing their financial stability and growth capacity.
The investment will contribute to funding for Alternergy's expansion plans, including the Tanay and Alabat Wind Power Projects, which are part of the Green Energy Auction 2 hosted by the Department of Energy, with a goal to secure PHP12 billion in capital.