Raslag eyes P1.45 billion BPI loan for solar projects

MANILA, Philippines — Raslag Corp., the renewable energy platform of the Nepomuceno Group, is looking to tap a P1.45-billion loan from the Bank of the Philippine Islands for the development of its solar power projects.

Raslag, in a stock exchange filing, said its board has approved plans to obtain a loan from BPI amounting to P1.2 billion to fund the construction and development of the 35-megawatt Raslag-4 solar plant in Pampanga.

The company will also borrow P250 million from the Ayala-led bank to bridge the partial financing of the land and acquisition for its Raslag 6 solar farm.

Raslag-4, the company’s fourth solar power project, was granted with the solar energy operating contract by the Department of Energy in October last year.

The company is processing its system impact study with the National Grid Corp. of the Philippines (NGCP) and has mobilized its partner contractor for the land development.

Raslag said it has selected F.D. Laxina Construction Services and Trading Corp. as the land developer for the project.

Raslag-4 is targeted to start construction within this second quarter and commercially operate in the first quarter of 2024.

Meanwhile, Raslag last January announced its board’s approval for the acquisition of parcels of land totaling to approximately 42 hectares in Gerona, Tarlac for the Raslag-6 project.

The company’s third solar project, Raslag-3, started operations in July 7, 2022.

Raslag-3 is connected directly to the 69-kilovolt transmission grid of the NGCP and its generated energy is supplied as a merchant plant in the Wholesale Electricity Spot Market (WESM).

For its incoming projects, Raslag said these are planned to be connected directly to the national transmission grid, same with Raslag-3.

Raslag made its debut on the Philippine Stock Exchange in June last year, raising P700 million after selling 350 million common shares at P2 apiece.

In 2022, net income of the company reached P147.1 million, up 26.2 percent from P116.2 million a year ago.

Revenue derived from the sale of electricity by the company rose by 31.5 percent to P383.8 million from 2021’s P291.8 million.

Raslag said the increase in sales of electricity in 2022 was fueled primarily by the start of the Raslag-3 operations.