Meralco’s MGreen pours in P15.9B to SPNEC

Meralco Powergen Corp.’s green energy arm MGen Renewable Energy Inc. (MGreen) is injecting P15.9 billion to Leviste-led solar power firm SP New Energy Corp. (SPNEC).

In a statement on Thursday, Meralco Powergen said MGreen’s investment would be for the subscription of 15.7 billion common shares and 19.4 billion redeemable preferred voting shares in SPNEC.

The company said SPNEC will file its application for an increase in authorized capital stock to enable MGreen’s investment.

Meralco Powergen said the fresh injection of capital by MGreen will fund the construction and expansion of SPNEC’s solar projects.

Upon closing, MGreen’s common and preferred voting shares will make MGreen the controlling shareholder of SPNEC with a total voting interest of 50.5%.

Meralco Powergen is a wholly-owned subsidiary of the Manila Electric Company (Meralco), while SPNEC is an integrated developer, owner, and operator of solar power projects. It is majority owned by Solar Philippines Power Project Holdings Inc. (SPH).

Under the investment deal, MGreen has agreed with SPH to use SPNEC as the primary vehicle to develop 3,500 megawatts (MW) of solar panels and 4,000 megawatt-hours of battery energy storage systems in Luzon.

“This will be one of the largest solar projects not just in Asia, but in the world. The Department of Energy’s vision is to have about 35% of the country’s energy come from renewable energy, and this is one of Meralco’s major contributions to this goal,” said Meralco chairman and CEO Manuel Pangilinan.

“We are humbled and grateful for this opportunity to build this renewable energy platform with Meralco. We look forward to bringing together Meralco’s capabilities and our solar developments for the benefit of all stakeholders,” said Leandro Leviste, CEO of SPNEC.

The completion of the transaction is subject to the satisfaction of certain conditions precedent, including the relevant regulatory approvals, according to Meralco Powergen.—LDF, GMA Integrated News