Solar Philippines Tarlac Corp. (Solar Tarlac), a unit of Solar Philippines Power Project Holdings Inc., is looking to raise P4.15 billion through the issuance of green bonds.
A joint venture between Solar Philippines and tycoon Enrique Razon’s Prime Metro Power Holdings Corp. (Prime Power), the company developed the 100-megawatt (MW) solar plant in Concepcion, Tarlac.
Last year, Solar Tarlac and Prime Power entered into a strategic partnership to develop the country’s largest portfolio of solar projects.
Solar Tarlac said the proceeds of the bond sale will be used to fund the plant’s expansion to 150 MW.
Credit ratings firm Philippine Rating Services Corp. (PhilRatings) assigned a rating PRS Aa plus for the bond, with a stable outlook.
“Obligations rated PRS Aa are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitments on the obligation is very strong. A plus (+) or minus (-) sign may be used to further qualify a rating,” PhilRatings said.
“An outlook is an indication as to the possible direction of any rating change within a one year period and serves as a further refinement to the assigned credit rating for the guidance of investors, regulators, and the general public,” it added, stressing that a stable outlook means rating is likely to be maintained or to remain unchanged in the next 12 months.
PhilRatings said Solar Tarlac enjoys a significant market position in the solar energy industry, although with a relatively short track record. Its project also has a 20-year take-or-pay power purchase agreement with Manila Electric Company and established solar irradiation data.
