SPNEC to use offering proceeds to start 4-GW solar projects

INSTEAD of waiting for the effectivity of its authorized capital stock increase, Solar Philippines Nueva Ecija Corp. (SPNEC) eyes using proceeds from its planned stock rights offering (SRO) for the 4 gigawatts (GW) of its 10-GW projects, the company said on Thursday.

In a media release posted by the exchange, the Leviste-led company said it was granted by its parent, Solar Philippines Power Project Holdings, Inc., the option to accelerate the development of the project sites and make it construction-ready by end of 2023 so it can increase its capacity.

“We note the feedback of our public shareholders who want us to accelerate our business plan, ahead of the consummation of the increase in authorized capital stock and share swap. As such, we are preparing SPNEC to accelerate the development of our largest projects, from the proceeds of an earlier filed SRO, given the importance of speed in developing projects to meet the growing demand for solar in the Philippines,” said Solar Philippines founder Leandro Leviste.

Earlier, SPNEC said it targets to complete its asset-for-share deal with its parent company 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.

The solar firm earlier said it was planning to raise P10 billion from its SRO in the second quarter of this year.

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

SPNEC shares at the local bourse surged 21 centavos or 13.55% to close P1.76 apiece on Thursday. — Marielle C. Lucenio