Solar Philippines Tarlac Corp., a joint venture of Solar Philippines Power Project Holdings Inc. and Prime Metro Power Holdings Corp. of businessman Enrique Razon, plans to raise P4.15 billion from the issuance of green bonds.
The company plans to use the net proceeds from the bond offering to refinance a P2.225-billion loan used for the construction of Solar Tarlac’s operational 100-megawatt solar plant in Concepcion, Tarlac and fund the expansion to 150 MW.
The proposed bond offering received a credit rating of PRS Aa plus with a stable outlook from Philippine Rating Services Corp. Obligations rated PRS Aa are of high quality and are subject to very low credit risk. The obligor’s capacity to meet its financial commitments on the obligation is very strong.
PhilRating considered Solar Tarlac’s significant market position in the solar energy industry despite its short track record. It said the company also has very manageable construction risk and market risk because of its 20-year take-or-pay power purchase agreement with Manila Electric Company.
Solar Tarlac’s supply agreement with Meralco covers almost all of the power expected to be generated by the plant. Any excess will be sold at the Wholesale Electricity Spot Market.
Solar Philippines and Prime Metro signed a strategic partnership in 2020 to develop the country’s largest portfolio of solar projects.
Solar Tarlac’s sister company Solar Philippines Nueva Ecija Corp. is also raising P2.7 billion through an initial public offering slated next month. SPNEC is the developer of a 500-MW solar project that is envisioned to be the largest solar project in Southeast Asia.
Net proceeds from the IPO will be used to complete the first 50 MW of the project and acquire land to expand the project beyond 500 MW.
The offer period will be from Dec. 1 to 7, while listing on the main board of the Philippine Stock Exchange was tentatively set on Dec. 17.