SOLAR Philippines Nueva Ecija Corp. (SPNEC) on Monday said it plans to offer 5.12 billion shares to the public so it can raise P10 billion for the completion of its solar projects with a combined capacity of 10 gigawatts (GW).

In a disclosure to the stock exchange, SPNEC said it aims to raise the funds “through a stock rights offering planned to be filed in the second quarter of 2022 and subject to regulatory approvals; and a possible private placement and follow-on offering.”

“While the terms of these offerings are typically determined later in the process, suffice it to say, the pricing must be attractive for the company to be able to raise its required capital,” it added.

The company said the move is among the steps it was looking at to reach its goal of creating P15 million per megawatt (MW) of value from its 10 GW of solar projects by 2025.

Another step is for it to focus on being a developer rather than being an independent power producer (IPP), it said. This means diverting its attention to developing solar farm sites “while working with other IPPs on financing and construction once the land is ready.”

“We believe the greatest challenge for solar in the Philippines is neither a lack of demand nor a surplus of projects, but rather, the challenge of consolidating land and permits that has resulted in a shortage of developed solar sites,” the company said.

Leviste-led SPNEC said it would also prioritize projects through partnerships with other IPPs to accelerate the country’s transition to renewable energy.

“Solar Philippines has reserved its 10 GW of planned projects pursuant to agreements with various companies to invest in its projects subject to certain milestones,” it said.

Meanwhile, Terra Solar Philippines, Inc., its joint venture with Razon-led Prime Metroline Infrastructure Holdings Corp. will get 1,000 hectares of the land being acquired.

Last week, SPNEC said it targets to complete its asset-for-share deal with its parent company Solar Philippines Power Project Holdings, Inc. by the middle of this year.

Once executed, SPNEC will have 32,497,400,005 shares, from which, it will issue at least 5,124,832,502 shares to the public through a stock rights offering, private placement, or follow-on offering.

On Monday, its shares at the Philippine Stock Exchange slipped 13 centavos or 6.13% to close at P1.99 apiece. — Marielle C. Lucenio