PetroEnergy plans P1-B stock rights offer

MANILA, Philippines - PetroEnergy Resources Corp. (PERC) of the Yuchengco Group is looking to raise P1 billion through a stocks right offer to partly finance plans to double its renewable energy capacity in two years.

In a disclosure to the local bourse yesterday, PERC said it is planning a pre-emptive rights offer to raise approximately P1 billion.

“The offer price and other details of the offer will be announced as soon as determined,” it said.

PERC said proceeds from the capital raising activity will be used to finance renewable energy projects and for general corporate purposes.

PERC AVP for finance Carlota Viray said the company is studying how to raise funds for four projects lined up in the next two years amounting to P6.7 billion.

One of the options for fundraising is through the stock rights offering which is targeted in the third quarter of the year, PERC vice president Francisco Delfin Jr. said in an interview.

“PERC is looking at the capital markets to raise P1 billion equity component of the P6-7 billion total aggregate project cost of expansion and new projects,” he said.

“It’s the equity side that we’re trying to generate from the capital markets via stock rights offer,” Delfin said, noting the balance will be sourced through loans.

This year, PERC is targeting to complete the 12-megawatt (MW) Maibarara geothermal-power project expansion in Batangas, which has a P1.9-billion project cost.

The company has also allotted P855 million for a 5-10 MW hybrid solar power project in Puerto Princesa, Palawan. It is targeted for commercial operations by the first quarter next year.

Meanwhile, P1.6 billion is earmarked for the 14-MW expansion of the Nabas wind farm in Aklan and P2.4 billion for the 49-MW Tarlac-2 solar-power project.

Once all these projects are completed, these projects will help the company nearly double its capacity in the next two years, Delfin said.