The Securities and Exchange Commission (SEC) has approved the planned P3.3 billion stock rights offering (SRO) of Solar Philippine Nueva Ecija Corporation (SPNEC), by confirming that the transaction is exempt from registration requirements.
In a disclosure to the Philippine Stock Exchange, SPNEC said the SEC issued the Confirmation of Exempt Transaction on July 19, 2022, in connection with SPNEC’s filing with the SEC on April 8, 2022.
The SRO will be offered to SPNEC’s existing stockholders in proportion to their shares held as of the planned Record Date of August 25, 2022, with the Ex-Date planned to be on August 22, 2022, or three trading days before the Record Date, subject to the approval of the PSE.
SPNEC is looking to raise P2.8 billion to P3.3 billion from the SRO and plans to use the proceeds for project development (including securing land and off-take agreements) in support of its goal of developing 10 GW of solar projects by 2025.
This will be enabled by SPNEC's increase in authorized capital stock and asset-for-share swap with its parent company Solar Philippines.
These assets include the 3.5 GW solar, 4.5 GWh battery Terra Solar project, which plans to supply Meralco 850 MW 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 (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.