Planned $54m float could drive first 50 MW of Philippines mega solar project

Developer Solar Philippines had previously stated the proceeds of a stock market float of its solar project company could finance an initial 225 MW of generation capacity but that figure now appears to have come in significantly.

November 15, 2021

The stock market float planned by Filipino developer Solar Philippines to get its 500 MW Peñaranda solar project off the ground could raise up to PHP2.7 billion ($54.1 million), the company has announced.

However, previously trailed plans to use the proceeds of the initial public offering (IPO) of the solar plant project company to fund an initial 225 MW of generation capacity at the site appear to have been dramatically scaled back.

With Solar Philippines having announced its IPO plans earlier this month, an update published by the developer on Saturday stated the first PHP1.3 billion ($26.1 million) would now be used to install an initial 50 MW of panels on former ranch land in the province of Nueva Ecija, with any further proceeds to be spent acquiring land with the eventual aim of expanding the project size beyond 500 MW.

Solar Philippines stuck to its target of aiming to begin construction this year. Having said, a fortnight ago, it intended to have an unspecified volume of solar capacity operational next year, that reference could now be to the first 50 MW slice of the development. The company had previously spoken of plans for an initial 225 MW phase, to be expanded with “further financing” to 500 MW and then “even beyond this capacity.”

The developer’s Solar Philippines Nueva Ecija Corporation project company will offer up to 2.7 billion shares to investors from December 1-7, for an estimated PHP1 per share ($0.02), although the final offer price is due to be set on Tuesday next week.

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Solar Philippines said the project company has been tentatively penciled in for a listing on the main board of the Philippine Stock Exchange (PSE) from December 17.

Leandro Leviste, founder of the Makati City-based solar company, quoted in Saturday’s press release, said: “We thank the PSE and SEC [Securities and Exchange Commission] for approving this IPO, which aims to give the public a new option to invest in RE [renewable energy] and increase the RE capacity of the Philippines.

“We’ve decided to make this our group’s first venture into the public markets because this is the asset that we are proudest to showcase: a site where will rise the largest solar project in southeast Asia, with potential for expansion given its proximity to Manila, to meet the growing demand for renewable energy in the Philippines.”

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