MANILA, Philippines — Tycoon Manuel V. Pangilinan’s SP New Energy Corp. (SPNEC) is infusing an additional investment of about P8.9 billion into two subsidiaries to fund their working capital requirements.
In a regulatory filing yesterday, SPNEC said its board of directors approved the subscription to P6.03 billion worth of shares of Terra Solar Philippines Inc. (TSPI) and the assignment of receivables as partial payment for the transaction.
Likewise, the board authorized the additional subscription to Terra Nueva Inc. (TNI) shares for a total consideration of about P2.9 billion.
In a message to reporters, SPNEC president and CEO Emmanuel Rubio said the subscription to TSPI will support its application with the Securities and Exchange Commission for its planned increase in authorized capital stock.
This is in preparation for the entry of the new investor and the future capital needed for SPNEC’s massive solar farm, which includes payment for contractors, Rubio said.
The capital infusion in TNI will be used for “land and right-of-way acquisition and land conversion cost, among others,” he added.
SPNEC, through TSPI, is developing the P213-billion Terra Solar project straddling the provinces of Nueva Ecija and Bulacan.
The solar farm, which covers about 3,500 hectares of land, will consist of 3,500 megawatts worth of solar panels and 4,500 MW hours of battery energy storage systems.
SPNEC said the project site would be owned by TNI, which will enter into a lease agreement with TSPI covering the property.
Last month, SPNEC parent Manila Electric Co. sealed a $600-million deal with UK-based investment house Actis, providing much-needed financial muscle for the construction of the solar farm.
Under the super deal, which came several months after Pangilinan signified plans to bring in a foreign investor, SPNEC has agreed to issue shares equivalent to a 40-percent stake in TSPI.
The Terra Solar project is targeted to be finished in phases: the first phase by 2026 and the second phase by 2027. Once completed, it will be the largest solar farm in the world.