Directors of MPC Caribbean Clean Energy Limited indicate the company has approved the issue of a non-voting convertible promissory note in the principal amount of US$10,000,000.00 to an accredited investor.
The notice, signed by MPC director José Fernando Zuñiga Galindo, said the note is for the purpose of raising capital to be invested in the MPC Caribbean Clean Energy Fund.
MPC Caribbean Clean Energy Limited (MPC) manages funds invested in renewable energy projects in the Caribbean.
The Fund focuses primarily on solar PV and wind projects, which are expected to account for between 80 per cent to100 per cent of overall investment.
Directors, on November 5, indicate that the new promissory note is expected to be issued and dated as of November 6, 2020.
They said it will be distributed on that date or such later date that it is approved for registration by the Trinidad and Tobago Securities and Exchange Commission.
The promissory note will entitle the holder to receive distributions equivalent to the dividends approved by the directors of the company to be paid to holders of Class B shares.
For this purpose, each US$1 of the principal of the note corresponds to one Class B share, limited to a maximum of eight per cent per annum in aggregate in any one year.
MPC said upon maturity on March 31, 2023, if the principal sum of the note has not been paid in cash on that date or earlier, the note will convert into Class B shares of the company subject to the prior approval of such conversion at a shareholders’ meeting.
Directors said the note is unsecured but senior to Class B shares in the event of liquidation or bankruptcy.
Back in January 2019, MPC raised US$10 million via a rights issue in Jamaica and Trinidad. The company is now listed on the stock exchanges of both territories.
Formerly known as CCEF (Barbados) Feeder Limited, MPC changed its name in 2018. It principally engages in investment holding.
The company owns 68 per cent of MPC Caribbean Clean Energy Fund, a private equity investment incorporated in Cayman which is a feeder fund for investments in renewable projects in Jamaica, Trinidad, Tobago and wider Caribbean.
MPC floated an offer of new Class B shares through a renounceable Rights Issue in November 2019. 10,242,382 new Class B shares were issued and listed. The amount raised was not disclosed in the year-end report.