Renewable energy company Wigton Windfarm will definitely be returning to the equities market in the coming months to raise capital for its expansion plans, particularly in Jamaica.
In addition, the company has already set its sights on regional expansion and is now in the market with some governments and existing overseas renewable companies for joint venture opportunities. On Wednesday, at its first annual general meeting (AGM), Wigton gave the clearest indication, so far, that it will return to the equities market to source more funds for its expansion projects in Jamaica and throughout the region.
Managing Director Earl Barrett, who made the disclosure, did not indicate the method to be used to source the necessary funds via the equities market, whether by a rights issue or through another public offer.
Responding to questions from shareholders, Barrett told the AGM that both options are open for consideration.
He told the meeting, which was held virtually, that several opportunities are being opened up for Wigton’s expansion, both locally and regionally, particularly given the drive throughout the Caribbean for renewable energy to replace fossil fuel. Arising from these opportunities, Barrett cited the need for additional capital.
As such, returning to the equities market for funding is definitely on the cards, especially with the much-expected request for proposal from the Government for additional renewable energy for the national grid. The Government is on record as stating that it will be going to the market to up the amount of renewable energy used in the national grid.
“If there was to be a call by the Government of Jamaica for additional renewable energy to go on the grid, there is a stipulation in the Jamaican market for such a call, that whosoever is going to make a bid, which of course Wigton is going to be in that bid, would have to have a minimum of 20 per cent equity,” said Barrett. “So you can only borrow up to 80 per cent, so chances are that for any sizeable project Wigton would be going back to the market seeking funds.”