Solar Philippines Nueva Ecija Corp. (SPNEC) said it plans to accept private placements by the end of the year to boost its public float as it facilitates the asset for share swap with mother company Solar Philippines Power Project Holdings Inc.
The asset-for-share swap will see SPNEC having a portfolio of over 1 gigawatts (GW) of renewable energy projects.
The asset covers over 20 entities, which SPNEC will acquire from Solar Philippines Power Project Holdings Inc. for P60.92 billion worth of shares.
SPNEC earlier said it will give Solar Philippines assets 24.37 billion shares at an issue price of P2.50 per share.
The share swap agreement is due to be filed for regulatory approval, with the issuance of shares planned alongside the private placements.
“We aim to complete the private placements to increase the public float for the share swap by the end of 2022,” said Leandro Leviste, SPNEC chairman.
SPNEC previously disclosed it would consider various options to increase its public float.
The company now confirms it is in discussions with investors for private placements.
“Our job is for these offerings to cover the equity required to complete the development of 10 GW of solar projects, while retaining an average of at least 50 percent economic interest. SPNEC’s model is to create value through project development, investing for a smaller percentage of the cost that catalyzes larger investments, in the same way that we have in our earlier projects,” Leviste said.
Solar Philippines Nueva Ecija Corp. (SPNEC) said it will soon be known as SP New Energy Corp. The company is in the middle of a P3.3- billion stock rights offering.
SPNEC is looking to offer to shareholders 1.88 billion option shares at a price range of P1.50 to P1.76 apiece, the proceeds of which it will use to finance project development of the 10 GW portfolio.
The rights offer will run between August 18 and September 5.
The proceeds of SPNEC’s planned SRO would primarily go to preparing sites for 4 GW of projects, and prioritize the requirements of its joint venture with Prime Infra, Terra Solar Philippines Inc. (Terra Solar)
Terra Solar plans to construct 3.5 GW of solar and 4.5 GWh of battery storage to supply Meralco 850 MW from 8AM to 9PM, on a firm basis like a conventional mid-merit power plant.
“These also include projects that were contracted in the Department of Energy’s Green Energy Auction, in which Solar Philippines won 70 percent of all the auction’s renewable energy capacity (1380 MW out of 1967 MW) and 91 percent of all the solar capacity (1350 MW out of 1490 MW),” the company said.
