Phinma Energy to spend $2 billion for RE projects
Credit to Author: JORDEENE B. LAGARE| Date: Tue, 17 Sep 2019 16:15:50 +0000
LISTED Phinma Energy Inc. plans to spend about $2 billion on implementing renewable energy (RE) projects that would help it achieve its capacity target in the next six years as it is set to be renamed AC Energy Philippines Inc.
“Our goal is to reach 2,000 MW [megawatts] of renewables by 2025,” Phinma Energy President and Chief Executive Officer John Eric Francia said during the Ayala-led company’s annual stockholders’ meeting in Makati City on Tuesday.
“Our vision for AC Energy Philippines is to be the leader in renewable energy in the country,” he added.
At a briefing following the stockholders’ meeting, Francia said the average cost of investing in the development of solar and wind projects was $1 million per MW.
These facilities would be financed through a 70:30 debt-to-equity financing ratio.
“Roughly around $500 million to $600 million of equity [is] required to fund the 2,000 MW [of RE]. That’s over six years,” he told reporters.
According to him, the company would raise fresh funds to implement both greenfield and brownfield projects, mostly RE plants.
“A lot of [our] 1850 MW or 2000 MW goal of renewables in the Philippines…should be greenfield. We’ve got six years to develop. We are also open to some acquisitions,” Francia said.
He also said funds for the building of these plants would be raised through an asset swap and stock rights offering (SRO), the terms of which would be decided by the firm’s board on October 9.
Afteward, an SRO application would be filed with regulators, the projected period of approval of which could take about three to six months, he added.
If approved, Phinma Energy expects to have proceeds from the SRO “sometime [in the] first or second quarter [of] next year,” Francia said.
This is part of the Ayala Group’s efforts to “turn around and transform” Phinma Energy, which the Ayala Corp. acquired early this year for P6.3 billion.
Francia said they are now in the process of consolidating the assets of Phinma Energy and its parent firm AC Energy Inc. “to form a stronger and more agile energy platform.”
Phinma Energy decreased by 19 centavos or 6.69 percent to close at P2.65 each on Tuesday.