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MRC Allied raising P1 billion to expand solar output

MRC Allied Inc. plans to raise P1 billion through a private placement to expand the company’s renewable portfolio to 100 megawatts of solar energy over the next two years.

Newly-appointed MRC president Gus Cosio said in an interview the company was focusing on renewable energy, mainly solar which is faster to roll out.

Cosio said the company was looking to build a 12-megawatt solar power facility in Central Luzon and interested in other acquisitions in Visayas and in Davao.

“To be attractive we need to at least have 100 MW of solar energy in our portfolio. We plan to achieve that target over the next two years,” Cosio said.

MRC Allied owns a 15-percent stake in a Leyte-based solar power firm Sulu Electric Power and Light Philippines (Sepalco) valued at P255 million. It has the option to further increase its stake in the company to at least 51 percent.

Cosio said MRC Allied by 2019 plans to have at least 43 MW of solar power through organic growth and acquisitions.

The company is now in talks to acquire a 30-MW solar power plant project in Leyte.

To fund potential acquisitions and construction of its own solar power plants, MRC Allied is looking to conduct a private placement to local investors.

Meanwhile, MRC Allied reported it signed a memorandum of agreement with Edward Marcs Philippines Inc. for the design, supply, delivery, construction, installation, testing and commissioning of its 550 kWP Grid-Tied Solar PV Rooftop Project for two rice milling plants in Northern Luzon. The project is estimated to cost P34 million.

Under the agreement, MRC Allied will be the project developer and owner of the solar facility while a private entity, owning and operating two milling plants, will purchase the power output.

Share price of MRC Allied on Monday dropped 3.6 percent to P0.40.

Topics: MRC Allied Inc. , Gus Cosio , renewable energy , Sulu Electric Power and Light Philippines
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