Solar PHL unit sets terms of SRO

Listed Solar Philippines Nueva Ecija Corp. (SPNEC) said the offer period for its stock rights offering (SRO) will start on August 30 and will end on September 5, according to the preliminary terms it released on Tuesday.

The company said it is offering some 1.87 billion in rights shares to eligible shareholders at a price of between P1.50 and P1.76 per share.

Pricing date for the company’s SRO, which allows shareholders to buy additional shares according to its holdings, is on August 18. It is giving 1 rights share for every 1.28 shares owned.

The company is expecting net proceeds of between P2.79 billion to P3.28 billion after deducting fees and expenses for the said offer.

“The net proceeds from the offer are intended for project development, including securing land and off-take agreements, and general corporate purposes,” the company said.

Solar Philippines Power Project Holdings Inc. and its affiliate Countryside Investments Holdings Corp., which owns a combined 70.46 percent of SPNEC, will not participate in the first and second round of offer. Solar Philippines, however, has committed to subscribe all the rights shares that remained unsubscribed after the mandatory second round of offering.

It will, however, reduce its subscription if it will breach the required minimum public ownership.

The shares will be listed on the Philippine Stock Exchange on September 15.

The Securities and Exchange Commission (SEC) earlier gave its green light for the said SRO by confirming that the transaction is exempt from the registration requirements under the Securities Regulation Code.

SPNEC said the SEC issued the Confirmation of Exempt Transaction on July 19. It filed its documents for the said exemption on April 8.

SPNEC is also increasing its authorized capital stock in and asset-for-share swap with its parent company, Solar Philippines Inc.

The company is raising funds for the development of 10 gigawatts (GW) of solar projects, including the 3.5 GW solar, 4.5 GWh battery Terra Solar project, which plans to supply Manila Electric Co. with 850 megawatts of mid-merit and has been touted as the world’s largest solar project.

Also included are projects that participated in the Department of Energy’s green energy auction, in which Solar Philippines won 70 percent of all the auction’s renewable energy capacity—1,380 megawatts out of 1,967 MW­—and 91 percent of all the solar capacity—1,350 MW out of 1,490 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.

“When we began talking about 10 GW, many were in disbelief, because the total installed solar capacity of the Philippines last year was just over 1.1 GW. But we hope that having contracts for the majority of 10 GW has now made this plausible,” Solar Philippines founder Leandro Antonio L. Leviste said.

“We were fortunate to have been at the right place at the right time, developing these projects since 2016. Now we have contracted this capacity, we look forward to work with other companies and stakeholders to deliver these projects and help achieve our country’s targets for renewable energy.”