State-run pension fund Government Service Insurance System (GSIS) has subscribed to renewable energy (RE) firm Alternergy Holdings Corporation’s Perpetual Preferred Shares 2 Series A amounting to PHP1.45 billion under a private placement.

GSIS and Alternergy made the announcement Tuesday upon the agreement signing led by GSIS president and general manager Jose Arnulfo Veloso and Alternergy chair Vince Pérez Jr. at the GSIS headquarters in Pasay City.

“Our growing commitment to sustainability propels us to build a solid investment portfolio of renewable energy infrastructure projects. Alternergy’s strong emphasis on RE complements and supports this commitment,” Veloso said.

He added that GSIS’ subscription to Aternergy’s shares under a private placement supports the National Renewable Energy Program as the publicly listed firm and renewable energy pioneer targets to build more renewables project in the future.

Veloso said investing in renewable energy also provides “a foundation for stable returns.”

“We are deeply honored to have GSIS as a cornerstone investor in Alternergy. Their support will accelerate Alternergy’s roll-out of our Triple Play portfolio of wind, solar, and run-of-river, in line with the mission of GSIS in sustainable nation building,” Pérez said.

Alternergy president Gerry Magbanua added that the equity infusion from GSIS will strengthen the company’s equity base as part of its medium-term capital raising program.

Alternergy is eyeing to raise PHP12 billion to finance its Tanay and Alabat Wind Power Projects, which won the Green Energy Auction 2 of the Department of Energy. (PNA)