THE Government Service Insurance System (GSIS) announced that they had subscribed to renewable energy (RE) firm Alternergy Holdings Corporation’s Perpetual Preferred Shares 2 Series A, with an amount reaching P1.45 billion under a private placement.

The state-run pension fund made the announcement along with Alternergy after reaching an agreement.

The signing was led by GSIS president and general manager Jose Arnulfo Veloso and Alternergy chair Vince Pérez Jr.

“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 in a message during the signing ceremony at the GSIS headquarters in Pasay City.

Veloso also said that the GSIS subscription to Aternergy’s shares under a private placement is in full support for the National Renewable Energy Program.

The publicly listed firm and renewable energy pioneer, is said to be aiming 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.

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