EEI to raise P2 billion via private placement

MANILA, Philippines — Listed construction giant EEI Corp. is raising P2 billion via the issuance of preferred shares to bolster the company’s balance sheet and fund future projects.

In a stock exchange filing, EEI said it secured board approval to issue 20 million preferred shares with a par value of P0.50 from its unissued preferred shares by way of private placement.

EEI said the subscription to the preferred shares by way of private placement has a total aggregate value of P2 billion.

RCBC Trust Corp. will serve as investment manager.

The dividend rate is set at 6.75 percent per annum payable quarterly starting on the third month from date of issuance.

EEI said the preferred shares are perpetual unless the company exercises its sole option to redeem at year seven from date of issuance.

The net proceeds will be used to strengthen the company’s balance sheet and retire working capital loans.

It will likewise be utilized to fund its future projects and for general and working capital requirements.

“The conduct of an equity fund raising by way of a private placement allows EEI to raise equity funds in a most expeditious and efficient manner, with the least cost to EEI,” the company said.

As one of the country’s leading construction companies, EEI has multiple mega infrastructure projects in the pipeline including big-ticket railway projects.

The 93-year-old company has a broad range of construction and engineering services, with expertise in the construction of infrastructure, buildings and industrial and electromechanical facilities.