NexGen boosts stake in solar unit

Solar panels stock image

NexGen Energy Corp., a listed renewable energy producer, has increased its investment in its subsidiary engaged in solar developments.

In a statement on Tuesday, the company said it subscribed to an additional 80 million common shares in Solar Powered Agri-rural Communities Corp. (SPARC), subsequently hiking its ownership interest in the latter from 77.7 percent to 95.9 percent.

It said the shares were priced at P1 apiece.

NexGen Energy said the infusion of additional investments came after SPARC increased its authorized common stock from P10 million to P140 million.

“This initiative allowed SPARC to raise funding for various corporate purposes, which include its expansion plans,” the group said.

It noted that SPARC currently owns and operates three solar plants in Luzon provinces: Bulacan, Zambales, and Bataan.

It pointed out that the plants have been posting robust performances, with revenues from power sales from last year alone reaching P116 million.

NexGen Energy also hinted at the possibility of putting up another solar farm in its Palauig, Zambales property, where it currently operates a 5-megawatt (MW) solar facility.

The company said it was looking at equipping it with an additional eight to 10 MW of capacity.

“SPARC’s increase in its authorized capital stock reflects the company’s confidence and commitment to grow its portfolio of solar farms, hand in hand with NexGen’s other solar subsidiaries,” said Eric Peter Roxas, President and CEO of NexGen.

“As the parent company, [NexGen] will be a proactive partner in helping SPARC produce clean and reliable energy for the communities it serves,” he added.

NexGen marked its stock market debut in July, raising P529 million. The figure, however, was nearly 9 percent lower than its target of securing P580 million.

It was the second clean energy company to go public last year.

The company is focused on wind and solar energy with more than 1.5 gigawatts of projects in the pipeline.