November 3, 2021 | 12:00am
MANILA, Philippines — Solar Philippines plans to launch a P1.3-billion initial public offering to finance its 500-megawatt solar project in Nueva Ecija.
The maiden share sale will be done through its wholly owned subsidiary Solar Philippines Nueva Ecija Corp. (SPNEC), the corporate vehicle for the planned 500-MW solar farm in Peñaranda, Nueva Ecija.
Solar Philippines said the IPO proceeds would serve as the equity for the construction of the project’s first 225 MW, which would be larger than any solar project operating in the Philippines today.
“We aim to raise at least P1.3 billion to fund the equity for the construction of the project’s first 225 MW, with the possibility of raising more to advance the expansion of the project,” Solar Philippines said.
We will disclose the timing of the planned IPO as soon as this has been firmed up,” it said.
The company will seek further financing to complete the 500 MW, which will be larger than any solar project operating in Southeast Asia today, and larger than the combined total of all non-Solar Philippines solar projects operating in Luzon based on the latest list published by the Department of Energy (DOE).
“We’ve decided to make Solar Philippines Nueva Ecija Corp. our group’s first venture into the public markets because this is the asset that we are proudest to showcase: a site where the largest solar project in the Philippines will rise, with potential for further expansion given its proximity to Manila,” Solar Philippines founder Leandro Leviste said.
The company aims to list under the Supplemental Listing and Disclosure Requirements for Renewable Energy (RE) Companies approved by the Philippine Stock Exchange (PSE) in 2011.
These rules allow development-stage project companies to list, subject to certain requirements, including having a valid and subsisting service contract awarded by the DOE.
“The PSE showed great foresight in creating this program for RE companies. Through this offering, we hope to give the public a new option to invest in RE, and expand RE in the Philippines,” Leviste said.
Solar Philippines plans to start construction of the project before the end of the year. Once operational, the project is intended to supplement the Luzon grid’s thin reserves and help prevent the rotating outages that affected millions of Filipinos earlier this year.
Once the solar farm is completed, Nueva Ecija would host the largest of five utility-scale Solar Philippines projects planned to be operational by 2022.
Moving forward, Solar Philippines aims to expand the project beyond the 500-MW capacity amid the country’s growing demand for renewable energy.
SPNEC was incorporated in 2017, and since then has been securing land and permits for its project.
Apart from the 500-MW Peñaranda solar farm, Solar Philippines’ other projects include one in Batangas with an operational 63 MW in partnership with Korea Electric Power Corp. (KEPCO); one in Tarlac, which is being expanded to up to 200 MW in partnership with Prime Infra of the Razon Group; and another two in Batangas and Cavite with a combined capacity of 140 MW planned to be fully operational by 2022.
These projects, along with the expansions of existing ones and the company’s rooftop solar portfolio, will comprise Solar Philippines’ first 1 gigawatt, half of which would be in SPNEC.
