Phinma Energy puts in P1.6 B add’l equity into RE subsidiary

MANILA, Philippines - Phinma Energy Corp. has bumped up its capital infusion in its renewable energy unit by another P1.6 billion for a total consideration of P2.35 billion to fund its expansion program.

In a disclosure to the Philippine Stock Exchange yesterday, Phinma Energy said it has subscribed to 1.6  billion preferred shares in Trans-Asia Renewable Energy Corp.  (TAREC), its vehicle for renewable energy generation.

The acquisition cost is equivalent to P1.6 billion, or P1 per share.

This capital infusion is on top of the earlier purchase of 750 million preferred shares amounting to P750 million.

Phinma Energy also disclosed it has fully paid the balance of its 750-million preferred share acquisition in TAREC.

“On Jan. 5, 2017 the corporation subscribed to 750 (million) preferred TAREC shares wherein 25 percent of which was paid on the same date amounting to P187.5 (million) with the balance of P562.5 (million) paid on Jan. 11, 2017,” the company said.

Phinma poured in more funds in TAREC as the latter raised its authorized capital stock by another 25 percent.

The company earlier said this will “provide funds to the subsidiary and build up its capital base.”

The closing of the transaction, however, is still subject to the approval of the Securities and Exchange Commission (SEC).

Late last year, TAREC officials said the company is looking to expand its wind portfolio. Currently, it operates the 54-megawatt (MW), 27-tower wind farm in San Lorenzo, Guimaras.

The company is eyeing to add 40 MW more in the San Lorenzo wind farm and put up another wind power project in nearby Nueva Valencia municipality in Guimaras, TAREC vice president Danilo Panes had said.