NEXGEN Energy Corp., a wholly-owned subsidiary of Pure Energy Holdings Corp. (PEHC), is in talks with environmental, social and governance (ESG) equity funds to help finance its renewable energy expansion program.
“The company is in discussions with several international ESG funds, and we are open to discussions with GOCCs [government-owned and controlled corporations],” NEXGEN president Eric Roxas said.
ESG funds invest in companies that have strong commitment to environmental preservation, socially responsible and have strong corporate governance. These funds are keen on renewable energy projects.
NEXGEN filed its initial public offering application with the Philippine Stock Exchange for 300 million shares with an overallotment option for another 45 million shares at an offer price up to P1.68 apiece for total estimated proceeds of P579.6 million.
It plans to use the proceeds to partially finance the equity portion for the development of the 5-megawatt (MW) Palauig 2 Solar Plant, an expansion of the existing 5-MW solar plant I Palauig in Zambales, partially finance the equity portions for the development of its 100-MW Silang Maragondon onshore wind power plant and its 40-MW Asisan onshore wind plant.
NEXGEN expects construction cost to reach P210 million for the Palauig 2 solar plant. NEXGEN’s service contract of the Palaguig 2 project is awaiting approval from the Department oof Energy.
Meanwhile, the Silang Maragondon wind farm in Quezon has an estimated project cost of P5.854 billion and already secured its WESC.
NEXGEN’s Asisan wind farm in Cavite will cost about P2.341 billion to construct and also secured its WESC.
