SPNEC plans stock rights offer

BY LENIE LECTURA – JANUARY 25, 2022
from Business Mirror

Solar Philippines Nueva Ecija Corp. (SPNEC) is planning to conduct a stock rights offering and forge more joint ventures to fulfill its goal of developing 10 gigawatts (GW) of solar power projects.

It said Tuesday that it is finalizing plans for 10GW of solar projects. “This would be enabled by asset-for-share swaps with its parent, 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.

Solar Philippines’ portfolio now comprises over 20 solar project companies, which include over 400 megawatts (MW) already operating or under construction, and over 10 GW in development.

These developments are located primarily in the provinces of Nueva Ecija, Batangas, Bulacan, and Tarlac, where Solar Philippines has spent the past years consolidating land suitable for solar in relative proximity to the Greater Manila Area.

“To support the development of these projects, SPNEC may conduct a possible stock rights offering, and form joint ventures,” it said. SPNEC added that the solar projects of this scale would only be made possible by partnering with the country’s leading power companies.

“Our aim is not to compete with the country’s power companies, but to make it easier for them to build solar projects, so that together, we can make solar the largest source of energy in the Philippines,” said Solar Philippines founder Leandro Leviste.

Solar Philippines has recently formed joint ventures for several of its projects. The company plans to complete forming joint ventures for its 10 GW of solar project developments within 2022, with its interest in these projects subject to the potential asset-for-share swaps with SPNEC.

It recently partnered with Razon-led Prime Infrastructure Holdings, Corp. to expand its solar project in Tarlac to up to 200MW.

SPNEC earlier sold 2.7 billion shares in its initial public offering (IPO) for P1 apiece.

It closed yesterday at P1.96 percent share, up 96 percent since its IPO. Net proceeds from the IPO will finance a 500MW solar power plant and will be used to acquire a lot in Nueva Ecija for the project.

Its other projects include a 63MW plant in Batangas in partnership with Korea Electric Power Corp. and two more in Batangas and Cavite with a combined capacity of 140 MW which are expected to be fully operational by 2022.

SPNEC said that based on Department of Energy figures, the country’s grid-connected solar capacity as of end-2020 stood at 1.021 GW.