SP NEW ENERGY Corp. (SPNEC) has invested P8.93 billion by subscribing to additional shares in its subsidiaries Terra Solar Philippines, Inc. and Terra Nueva, Inc.
The board of directors approved SPNEC’s investment of P6.03 billion in Terra Solar and P2.9 billion in Terra Nueva, the company said in a regulatory filing on Thursday.
The project site for Terra Solar’s project, consisting of a 3,500-megawatt-peak solar farm and a 4,500-megawatt-hour battery energy storage system, will be owned by Terra Nueva, SPNEC said.
“TSPI (Terra Solar) and TNI (Terra Nueva) will enter into a lease agreement covering the same,” the company said.
SPNEC President and Chief Executive Officer Emmanuel V. Rubio said that the company’s additional subscription to Terra Solar is to support its application with the Securities and Exchange Commission.
This is “in preparation for the incoming investor and the future funding needed for the Terra Solar project, which includes payments for engineering, procurement, and construction (EPC) contractors.”
SPNEC and its parent company Meralco PowerGen Corp. (MGen) said that British investment group Actis has agreed to invest in a 40% equity stake in Terra Solar amounting to $600 million. MGen is a wholly owned subsidiary of Manila Electric Co. (Meralco).
Terra Solar also recently signed a contract with Meralco Industrial Engineering Services Corp., the engineering, procurement, construction, and operations arm of Meralco, to link the P200-billion Terra Solar project to the Luzon grid.
The first phase of the project is scheduled to be delivered by 2026, while Phase 2 is targeted for 2027.
Meanwhile, SPNEC’s capital infusion in Terra Nueva is set aside for land and right-of-way acquisition, land conversion costs, among others, Mr. Rubio said.
Incorporated in 2022, Terra Nueva is primarily to invest in, purchase, or otherwise acquire, own, and hold assets purely for investment purposes.
SPNEC is now controlled by the Pangilinan group through MGen Renewable Energy, Inc., the renewable energy development arm of MGen.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
