The Philippine Stock Exchange (PSE) has approved the Stocks Rights Offering (SRO) of Solar Philippines Nueva Ecija Corp. (SPNEC), which would allow the company to raise as much as P3.3 billion to fund its massive clean energy projects.
SPNEC, the listed power company founded by young businessman Leandro Leviste, has applied for an SRO consisting of 1.9 billion shares to eligible shareholders at a price range of P1.50 to P1.76 per share.
In its Notice of Approval dated 28 July, the PSE also approved the proposed SRO timetable, with an Ex-Date of 22 August, record date of 25 August, and an offer period that will fund from 30 August to 5 September.
Last month, corporate regulator Securities and Exchange Commission (SEC) also issued a Confirmation of Exempt Transaction confirming that SPNEC’s planned SRO is exempt from the registration requirements of the Securities Regulation Code.
SPNEC can raise around P2.8 billion to P3.3 billion from the offer and would be allocated to its project development — including securing land and off-take agreements
It will also support the company’s goal of developing 10 gigawatts (GW) of solar projects by 2025, enabled by the increase in its authorized capital stock and asset-for-share swap with its parent company, Solar Philippines.
These include the 3.5 GW solar, 4.5 GWh battery Terra Solar project, which plans to supply Meralco 850 megawatts (MW) of mid-merit and is touted as the largest solar project in the world.
Also included are projects that participated in the Department of Energy (DOE) 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).
These developments have brought the total capacity of substantially contracted Solar Philippines projects to over 6 GW, compared to just over 1.3 GW of total solar installed capacity in the Philippines as of the end of 2021, according to DOE figures.