RASLAG Corp the renewable energy arm of the Nepomuceno group, has taken significant steps to fuel its growth by approving the issuance of up to PHP 2 billion preferred shares, a land purchase for its RASLAG VII project, and a potential 15-megawatt (MW) peaking power deal with Pampanga I Electric Cooperative, Inc. (PELCO I).
In a disclosure to the Philippine Stock Exchange, the company said its board authorized the issuance of up to 15 million preferred shares to raise PHP 1.5 billion, with an oversubscription option of an additional PHP 500 million, through private placements. BPI Capital Corporation was appointed as the sole issue manager, lead underwriter, and bookrunner, with Picazo Buyco Tan Fider & Santos serving as legal counsel.
The share issuance awaits Securities and Exchange Commission approval to convert 100 million unissued common shares into preferred shares, a process expected to strengthen RASLAG’s financial position without adding debt.
In a separate move, RASLAG committed PHP 10 million to purchase a 1,000-square-meter lot for a switching station tied to its RASLAG VII solar project. The station will connect the facility to the power grid, marking a concrete step in the company’s expansion plans. Taxes and miscellaneous costs will add to the final price tag.
The standout decision, however, was the board’s authorization of President Robert Gerard Nepomuceno to negotiate a 15MW peaking power supply agreement with PELCO I through direct talks. Peaking power, delivered during high-demand periods, could position RASLAG to earn higher rates while meeting Pampanga’s energy needs—a region known for its industrial and commercial growth.
The peaking power deal could prove a game-changer for RASLAG, which has steadily built its solar portfolio in recent years. With PELCO I as a partner, the company aims to secure a steady revenue stream while addressing the Philippines’ demand for reliable energy during peak hours, such as hot summer months.
The resolutions come as RASLAG aligns itself with the country’s renewable energy goals. The PHP 1.5 billion from the preferred shares is expected to fund further projects, while the RASLAG VII switching station lays the groundwork for additional solar capacity. Details on the share issuance and peaking power agreement will be finalized pending regulatory approvals and negotiations.
RASLAG’s latest moves signal a dual focus: bolstering its financial foundation and seizing high-value opportunities in the energy market. For now, all eyes are on Nepomuceno’s negotiations with PELCO I—and the SEC’s next steps.
Can RASLAG balance its ambitious expansion with premium market opportunities? Share your thoughts on how these decisions might shape RASLAG’s future and the Philippines’ renewable energy landscape.
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