Alternergy Holdings Corporation (ALTER) reaffirmed its commitment to transparency and ethical governance following scrutiny over its PHP 1.45-billion transaction with the Government Service Insurance System (GSIS), which is now the subject of an official probe.

In a statement on July 22, Alternergy said the GSIS investment in its perpetual preferred shares (PPS) was “fully documented, transparent and above board,” noting that the pension fund stands to gain a projected return of 56%, or PHP 826 million, over a seven-year period.

“We are confident that all our actions adhere to the highest standards of governance,” said Gerry Magbanua, Alternergy President. “Maintaining stakeholder trust is at the core of everything we do.” He added that the company is ready to cooperate with any official review.

The PPS were subscribed by GSIS in December 2023 and listed on the Philippine Stock Exchange in March 2024. These shares are non-voting, non-convertible, come with an 8% annual coupon, and are redeemable at a premium starting in the fifth year.

Alternergy remitted its first annual PPS coupon payment of PHP 118 million to GSIS in December 2024.

The PHP 1.45 billion raised from GSIS was used to accelerate construction of Alternergy’s Tanay and Alabat wind projects, which were awarded under the Department of Energy’s Green Energy Auction 2 (GEA 2). These projects are part of Alternergy’s 225-MW development pipeline.

“This affirms the soundness of GSIS’ investment decision in Alternergy,” Magbanua said, “and reflects its and its members’ commitment to renewable energy and sustainability.”

Alternergy also pointed to strong financial results since its IPO in March 2023, citing a 241% increase in net income (from PHP 38 million in 2023 to PHP 129.6 million in 2024), a 60% rise in revenue, and a PHP 40 million common dividend declared in July 2025.

“These are clear signals of strong fundamentals and responsible capital allocation and reflect our ability to grow while upholding integrity,” Magbanua added.

The company’s statement comes as the Office of the Ombudsman issued a preventive suspension order against GSIS President and General Manager Jose Arnulfo “Wick” Veloso and six other officials. The officials are facing administrative charges in relation to the GSIS investment, including alleged failure to secure board approval before finalizing the PHP 1.45-billion deal.

The Investment & Capital Corporation of the Philippines (ICCP), which served as sole arranger for the PPS and joint lead underwriter of Alternergy’s 2023 IPO, also issued a statement Monday affirming the integrity of the transactions.

“All disclosures were made to regulators and investors in line with the best standards of fairness, transparency, and investor protection,” said ICCP President and COO Manny Ocampo. ICCP emphasized that the preferred shares were designed for institutional investors and complied with all Philippine Stock Exchange (PSE) and Securities and Exchange Commission (SEC) requirements.

Alternergy said it remains focused on its “Road to 500MW” target by 2026 through the continued development of wind, solar, and run-of-river hydro projects.

How can transparency be strengthened in public sector investments in renewables? Let us know your thoughts.

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.