ABS-CBN News

Posted at Dec 27 2021 02:59 PM

Solar Ranch or Southeast Asia’s largest solar project will soon rise on a former ranchland developed by Solar Philippines Nueva Ecija Corporation. Handout

MANILA - Solar Philippines Nueva Ecija Corp (SPNEC) has started the construction of the first phase of what could be the largest solar project in Southeast Asia.

The proceeds of its P2.7 billion IPO will be used to construct the first 50 MW and the interconnection facilities for the full 500 MW project as well as to acquire the land for further expansion, the company told the stock exchange on Monday. 

SPNEC said the first 50 MW is expected to begin contributing power to the grid by the end of 2022. 

The project, to be installed in Peñaranda, a 4th class municipality in Nueva Ecija, is expected to create over 5,000 jobs during construction and over 500 jobs once operational, the company said. 

"The company is investing in training locals in solar panel installation, given the expected scale of projects in this area over the coming years," the statement said. 

SPNEC said the Department of Energy envisions to source 35 percent of the country's energy from renewable sources by 2030, which means there is a need to build over 20,000 MW of solar power. 

As of December 2020, the country has a total operating solar capacity of 1,021 MW.

Solar Philippines Nueva Ecija Corp debuts on Philippine Stock Exchange

Solar Philippines Nueva Ecija Corp (SPNEC) on Friday listed on the Philippine Stock Exchange under the supplemental listing rules for petroleum and renewable energy companies.

The firm is the first renewable energy company to list under the supplemental listing rules which took effect on Sept. 28, 2011, PSE president and CEO Ramon Monzon said during the bell-ringing ceremony. 

"Like REITs, it took more than a decade for the first renewable energy company to list under said supplemental rules. Congratulations to Solar Philippines Nueva Ecija Corp or SPNEC for leading the way," Monzon said.

The supplemental rules allow renewable energy companies in the development stage to list, easing the general 1-year operating requirement and, thus, "creating a more accessible" investing environment, said Securities and Exchange Commission chairman and CEO Emilio Aquino.

"Funding for greenfield projects is what the country needs... We wanted to find out if the market was willing to bet for projects that are in development," SPNEC Chairman, president and CEO Leandro Leviste said.

He said 95 percent of the "solar of the future" is in the pre-operating stage. The Philippines needs over 20x more solar than what it has today to reach the Department of Energy's goal, he said. 

Proceeds from the IPO will be used for land acquisitions and to partially fund its ambitious solar project in Nueva Ecija, SPNEC said.

"If the capital market can enable SPNEC's first 50 MW and if SPNEC delivers, then so can the capital markets, foreseeably enable the next 500 MW and even 5,000 MW," he said.

"Based on this IPO, we hope it can be said that the capital markets have spoken and that capital should not be the constraint for our country's transition to renewable energy as long as companies deliver," he added.

SPNEC earlier said it has raised P5.3 billion in orders for its initial P2.7 billion offer. 

The company plans to develop the "largest" solar project in Southeast Asia.

Solar Philippines sets final IPO offer price at P1 per share

Solar Philippines Nueva Ecija Corp has set the final offer price for its proposed initial public offering (IPO) at P1 per share, it said Wednesday.

"Please be advised that the final offer price for the initial public offering of Solar Philippines Nueva Ecija Corp's common shares is P1.00 per common share," it said in a notice to the stock exchange.

The offer period is set on Dec. 1 to 7 with a tentative listing date on Dec. 17.

Solar Philippines founder Leandro Leviste earlier said it planned to use the proceeds to partly fund its 500 MW solar power project which could be the largest solar project in Southeast Asia.

The IPO has earlier secured the approval of both the Philippine Stock Exchange and the Securities and Exchange Commission.