NGCP will increase its share capital
THE NATIONAL Grid Corp. of the Philippines (NGCP) is increasing its Authorized Share Capital (ACS) to permit the issuance of non-voting preferred shares to Synergy Grid and Development Philippines, Inc. (SGP).
SGP subscribed for 203.63 million non-voting preferred shares of NGCP at P6.10 each for a total of P12,238,163,000.00. last year to pay NGCP.
The subscription to NGCP shares will result in an increase in the network manager’s capital, as well as in the granting to the SGP of a direct participation in NGCP of 9.241% of the latter’s outstanding share capital.
SGP will be entitled to the features of non-voting preferred shares such as receiving dividends, with the exception of dividends that SGP already receives indirectly from NGCP through holding companies. In 2020 and 2021, NGCP declared an annual dividend of 12 billion pesos for its ordinary shares, published on a quarterly basis.
NGCP said the amount will be used to fund its capital expenditure (capex) programs as well as other related expenses.
“This amount will be a huge boost to fund NGCP’s capital expenditure, much of which is going towards new transmission projects for the improvement, modernization and expansion of the country’s power grid,” said SGP President Henry T. Sy Jr.
SGP indirectly controls 60% of the outstanding share capital of NGCP, SGP’s sole operating asset, with a 40.2% effective interest consisting of common stock.
NGCP holds the sole and exclusive concession and franchise to operate the Philippines’ transmission grid, connecting electricity generators and distribution utilities to supply electricity to electricity distributors and cooperatives throughout the country.
Over the next 13 years, the NGCP has pledged to invest about 440 billion pesos in 211 projects aimed at supporting the country’s growing electricity demand and making the country’s electricity backbone permanently reliable.
“Our investors who have chosen to partner with us at the SGP are instrumental in ensuring that the NGCP projects in the pipeline will come to fruition and play an important role in the economic development of the country,” said the Vice President of the SGP, Robert G. Coyiuto Jr..