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MPC Clean Energy executes new Cayman Island investment

MPC Caribbean Clean Energy Limited (MPC), a company which manages funds invested in renewable energy projects in the Caribbean, has executed its second round of investment as planned.

MPC Caribbean Clean Energy Limited yesterday announced it has executed its second round of investment as planned.

Yesterday, the company gave notice that it has been submitted as a shareholder in the Cayman Islands-based company MPC Caribbean Clean Energy Fund LLC for a committed amount of US$9,292,372.58.

Director José Fernando Zuñiga Galindo said the project closed on July 13.
MPC Caribbean Clean Energy Fund LLC (Fund) is the investment company in which MPC Caribbean Clean Energy Limited was supposed to invest as outlined in the company’s Prospectus.

The investment company is a Cayman Islands exempted company incorporated in the Cayman Islands in 2017. The fund focuses primarily on solar PV and wind projects, which are expected to account for between 80 to 100 per cent of overall investment.

MPC raised US$10 million via a rights issue in Jamaica and Trinidad in January 2019. The company is now listed on the stock exchanges of both territories.

The company disclosed its largest investors as being the Development Bank of Jamaica, funds managed by Sagicor Group Jamaica Limited and the Teachers Credit Union of Trinidad and Tobago.

In comments attached to its unaudited, year-end results, the company said that after a satisfactory KYC process, MPCCEL would have made the second investment into the fund, of a size equal to the net proceeds raised in the rights issue, minus a liquidity reserve.

Chairman of the Board of Directors, Fernando Zuniga, outlined in the company’s annual report that the first year listed in the Caribbean as one of “establishing, growth and expansion.”

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 yearend report.

Since start up, the company has faced deferred underwriting costs of US$177,864, associated with the listing of the company on both the TTSE and JSE.

In 2019 the expenses of the Company exceeded the approved budget by approximately 22,000 US.

The chairman explained that the additional expenses are related to some increased administrative costs.

MPC, in line with its dividend policy, approved a dividend amounting to US$1,016,750 on 30 August and were distributed on 27 September 2019.

Projects in which the company has invested include Tilawind (21 MW wind farm in Costa Rica) and Paradise Park (51.5 MWp solar park in Jamaica).

At year end Tilawind exceeded its forecast energy production by 2.3 per cent. Paradise Park started commercial operations in June 2019 and reached its target energy production and sales levels after a start-up phase in November 2019.

Tilawind and Paradise Park earned revenues of a combined US$10.96 million resulting in a combined EBITDA of US$7.22 million.

Income in the past year income amounting to US$1.89 million was a combination of valuation gains on fair value of approximately US$878,000 and dividend income of US$1,014,877.
Earnings per share at year end were US17 cents per unit.