SP New Energy Corporation (SPNEC) has approved measures to support a PHP3.78 billion term loan facility from the Philippine National Bank (PNB) for its subsidiary Solar Philippines Tarlac Corporation (SPTC).

In a meeting on September 19, the company’s Board of Directors authorized the creation of a security interest over SPNEC’s shares in SPTC and agreed to act as sponsor for a Standby Letter of Credit for the subsidiary’s Debt Service Reserve Account. SPNEC also named authorized signatories to carry out the loan agreement.

The board also gave its nod to steps tied to SPTC’s capital restructuring and quasi-reorganization. This included changes to its Articles of Incorporation, the issuance of preferred “A” shares through the conversion of advances, and the offsetting of deficits with paid-in capital. SPNEC likewise approved its subscription to the new preferred shares and appointed SyCip Gorres Velayo & Co. as SPTC’s external auditor.

SPNEC said these actions form part of its efforts to strengthen the financial position of its subsidiary and secure funding for its operations.

How do you see this loan facility shaping the growth of SPNEC’s energy projects in the country?

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