Solar Philippines unit to raise P10b for 10GW projects

This forms part of SPNEC’s plan to raise its capital stock to 50 million shares.

Solar Philippines subsidiary, Solar Philippines Nueva Ecija Corporation (SPNEC), needs to raise at least P10b to develop 10-gigawatts of solar projects.

The company plans to file a stock rights offering (SRO) in the second quarter of 2022 to raise funding. SPNEC may also raise it through private placements with institutional investors.

“We need at least P10b to complete the development of 10GW of solar projects. This is only a small percent of project cost, but we believe is a large percent of the value, with development being the bottleneck for the energy transition of the Philippines,” Solar Philippines founder Leandro Leviste, said.

“As a developer, SPNEC’s business model is to make projects shovel-ready, then bring in joint-venture partners who can help fund the construction. That said, we could also invest a much larger amount, and would take the opportunity to raise such if this is seen to be accretive to shareholders.”

SPNEC’s developments are located primarily in the provinces of Nueva Ecija, Bulacan, Tarlac, Batangas, and Quezon.

Solar Philippines noted these developments would be supported by a potential asset-for-share swap between SPNEC and Solar Philippines.

SPNEC has not yet approved any asset-for-share swap, which is subject to a third-party valuation and fairness opinion by an independent financial advisor.

The proposed fundraisings and asset-for-share swap are part of SPNEC’s plan to increase its authorized capital stock to 50 billion shares.