Solar Philippines Nueva Ecija Corporation (SPNEC) is aiming to raise Php10 billion by way of a stock rights offering (SRO) to buy land for the development of ten gigawatts (GW) of solar projects.
In a disclosure to the Philippine Stock Exchange (PSE) on Monday, SPNEC said its board approved the conduct of the SRO, wherein eligible stockholders can subscribe to the company’s common shares.
SPNEC aims to file the SRO by the second quarter, subject to approvals by the PSE and the Securities and Exchange Commission.
“We need at least Php10 billion to complete the development of 10GW of solar projects. This is only a small percent of project cost, but we believe is a large percent of the value, with development being the bottleneck for the energy transition of the Philippines,” Leandro Leviste, founder of SPNEC parent firm Solar Philippines, said in a statement on Tuesday.
“As a developer, SPNEC’s business model is to make projects shovel-ready, then bring in joint-venture partners who can help fund the construction. That said, we could also invest a much larger amount, and would take the opportunity to raise such if this is seen to be accretive to shareholders,” he added.
Proceeds of the SRO, along with the proceeds from SPNEC’s initial public offering back in December 2021, will be used to purchase the land where the 10GW worth of solar projects would be developed.
Aside from the SRO, SPNEC is also looking at an asset-for-share swap scheme with Solar Philippines
To help fill up the 10GW portfolio, SPNEC also said earlier that it is looking at forming joint ventures with other power companies.
The proposed fundraisings and asset-for-share swap are part of SPNEC’s plan to increase its authorized capital stock to 50 billion shares, subject to approval at a stockholders meeting on March 7.
SPNEC is the developer of the 500-megawatt “solar ranch” in Peñaranda, Nueva Ecija.