Tuesday 25 February, 2020

MPC Caribbean announces IPO

Caribbean-based investment company MPC Caribbean Clean Energy Ltd. has announced the launch of its Initial Public Offering (IPO) for shares to be cross-listed on the Jamaica and the Trinidad & Tobago Stock Exchanges.

The IPO opens on December 3 and closes on December 14. It offers investment in clean energy projects in the Caribbean region including wind farms and solar parks.

MPC Caribbean has been formed to facilitate and participate in the renewable energy project investments of MPC Caribbean Clean Energy Fund LLC in Jamaica, Trinidad and Tobago, and the wider Caribbean region.

The Company will only invest into the Fund, which is one of only a few infrastructure investment funds specialising in clean energy in the Caribbean and has the potential to provide an attractive investment opportunity for both institutional and private investors - due to the significant growth potential of clean energy in the region.

Initial investments of the Fund include the largest solar park in Jamaica, which will generate enough electricity to supply more than 50,000 people with clean energy at the lowest production costs in Jamaica and the Caribbean.

JPS Co. will purchase all electricity for the next 20 years for a fixed price. The solar park required a total investment of USD 64 million and is financed by investors and financial institutions from France and the Netherlands.

Tilawind, an operational 21 MW wind farm in Costa Rica, represents the second targeted investment of MPC Caribbean Clean Energy Fund LLC and a co-investor from Trinidad & Tobago for a total investment of more than USD 50 million.

Since 2014, renewable energy in Costa Rica supplied more than 98 percent of the energy output for the entire nation. The Tilawind wind farm is contributing to this achievement since 2015 while providing an attractive cash yield.

The wind farm was financed with a loan from Costa Rica’s largest bank Banco Nacional. The Fund intends to double the electricity production of Tilawind in the coming years and to supply more than 100,000 people with clean energy in Costa Rica.

Martin Vogt, Managing Director at MPC Renewable Energies, the investment advisor to the Fund manager, said the clean energy investment specialist wants to support the trend toward renewable energy use across the Caribbean.

“The majority of the Caribbean countries rely on fossil fuel imports which lead to high electricity prices. Renewable energy, on the other hand, has only played a minor role in the region, even though the conditions for leveraging solar and wind power are ideal.

Considering the increasing demand for energy renewables are of major importance when it comes to electricity generation. We want to support this trend by investing in a diversified portfolio of renewable energy infrastructure throughout the Caribbean region.”

“Our vision is to make the Fund the main investment company for renewable energy in the Caribbean. We have identified a variety of projects which require approximately USD 500 million of private investments and that would not only significantly reduce the carbon footprint of pre-existing power generation assets in the region but would also meet our investors’ expected returns.

Our pipeline includes clean energy investments in Jamaica, the Dominican Republic, Costa Rica, Colombia, amongst others.”

MPC Renewable Energies GmbH, a wholly-owned subsidiary of the publicly listed German asset and investment manager MPC Capital AG, is the investment advisor to the fund manager of MPC Caribbean Clean Energy Fund LLC.

The investment advisor’s team consists of Martin Vogt, Managing Director, Head of Origination, Renewable Energy, David Delaire, Managing Director, Head of Asset Management, Power & Renewable Energy, and Fernando Zúñiga, Director, Central America & Caribbean of MPC Renewables Panama SA.

The offering prospectus and subscription forms for the soon to be launched IPO are available through the Company’s website at www.mpc-cleanenergy.com.

The offering will be marketed by JN Fund Managers Ltd. in Jamaica and First Citizens Brokerage and Advisory Services Limited in Trinidad & Tobago as lead brokers.

The minimum subscription to the offering is USD 500 (or the equivalent of JMD in Jamaica).


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