IFC lends $75 million for SunPower solar cell project in Batangas

MANILA, Philippines - The International Finance Corp. (IFC), the private investment arm of the World Bank Group, is providing a $75-million loan to US-based SunPower Corp. for its solar cell manufacturing operations in the Philippines.

The investment is expected to spur the use of solar power globally, support local economic growth and sustain the many skilled jobs that the company has created in the Philippines.

IFC’s loan will provide funding to SunPower’s 108-megawatt (MW) solar cell and module manufacturing plant in Laguna and a 466-MW solar cell fabrication facility in Batangas.

The investment will strengthen SunPower’s ability to manufacture its high-efficiency solar cells.

Last month, Silicon Valley-based SunPower offered $220 million of 4.5-percent senior cash convertible debentures due 2015.

SunPower intends to use the proceeds from the $220-million offering to replenish the cash reserves used in its acquisition of SunRay Renewable Energy, for working capital, capital expenditures and general corporate purposes, to pay the cost of the cash convertible debenture hedge and warrant transactions and for the repayment of debts.

IFC director for global manufacturing and services Dimitris Tsitsiragos said the SunPower loan is part of IFC’s climate change strategy that supports the scaling-up and cost-competitiveness of renewable energy sources to reduce greenhouse gas emissions.

“IFC has been investing in the Philippines for over 40 years, mainly in financial services and infrastructure sectors. Therefore, this investment represents an opportunity for IFC to broaden its developmental impact in the country,” he added.

The IFC has also collaborated with the Bank of the Philippine Islands (BPI) and Banco de Oro Unibank Inc. BDO for funding at an estimated combined amount of over P3 billion for climate change and green energy in the past months. The funds would either be re-lent to institutions seeking adoption of environmentally-friendly technology or for development of green technology.

Meanwhile, SunPower said that investing in the solar photovoltaic supply chain is a critical part of IFC’s climate change strategy, as solar energy is a reliable source of carbon-free electricity that can be used in grid-connected and off-grid applications.

SunPower Corp. executive vice president and chief financial officer Dennis Arriola said the partnership with IFC would enable the company to improve its manufacturing processes.

In fact, it announced plans of building a 1.3-MW solar power plant in the Lazio region of Italy for Solar Green Energy-SGE, a joint venture between EDF-EN Italia, a subsidiary of EDF Energies Nouvelles, and Emmecidue, an Italian project developer.