ATN Holdings Inc (ATNH) has secured a P1.5 billion investment plan to bankroll its 30-megawatt (MW) solar project in Rizal province.
In its disclosure to the Philippine Stock Exchange, the company’s board approved its proposed investment plan for the additional investment in ATN Philippines Solar Energy Group Inc. (ATNS) “by inviting qualified investors looking for high-yield Renewable Energy instruments to subscribe to ATNH’s preferred shares, with no dilution impact to the outstanding ATNH Common Shares.”
ATNH’s equity will partially finance the planned P5.64 billion 120 MW power generation plant in its 256 – hectare property in Rodriguez Rizal.
The planned equity investment ATNS amounts to P2.14 billion, where P1.5 billion will come from the investment plant in which the Securities and Exchange Commission (SEC) approved last June 30 to reclassify five billion Class A common shares to preferred shares.
“Investment plan shall not constitute an offer to sell or be considered a solicitation of an offer to buy.” ATN Holdings said.
The company tapped in Philippine Veterans Bank, United Coconut Planters Bank, and China bank for a debt financing worth P2 billion. Another P1.5 billion will be borrowed from another bank, which is still undergoing due diligence.
The 30 MW solar photovoltaic project is aimed to take advantage of the growing economy in Rizal and San Jose del Monte, Bulacan. The project site is located two kilometers from the P200 million SJDM Bulacan Super City currently being built by the biggest real estate developers and investors.
“The New City creates new demand of energy of 300 MW, growing at 10 percent annually,” ATNH said.