The board of SP New Energy Corp. has approved a plan to secure a term loan facility of up to P3.78 billion from the Philippine National Bank for its subsidiary, Solar Philippines Tarlac Corporation (SPTC).
SPNEC disclosed the board’s approval to the Philippine Stock Exchange on Monday.
The SP Tarlac project, located in Barangay Sta. Rosa, Concepcion, Tarlac, currently has a capacity of 85 megawatts. The facility occupies a total project area of 126.25 hectares and includes 323,589 solar panels and 90 inverters.
The company has planned a 31-megawatt expansion for the project, which is targeted for completion between September and October. SP Tarlac intends to use the loan to fund the expansion and to refinance its existing loan at a more favorable rate.
SPNEC’s board also approved the creation of a security interest over its shares in SP Tarlac. The board also approved that SPNEC will act as a sponsor for a standby letter of credit for debt service reserve account purposes for SP Tarlac.
As of August, SPNEC is 35.70 percent owned by MGen Renewable Energy Inc., 53.66 percent by Solar Philippines Power Project Holdings Inc., and 3.19 percent by Metro Pacific Investments Corporation. The remaining shares are held by the public.
