Greenergy gets SEC nod to raise capital stock for expansion

The Securities and Exchange Commission has approved the plan of Greenergy Holdings Inc. to raise its authorized capital stock to P2 billion from P1 billion, in preparation for the company’s future investments in power projects.

In a disclosure to the Philippine Stock Exchange, Greenergy also reported that Earthright Holdings Inc. had subscribed to P250 million worth of shares, covering 25 billion common shares at par value of 1 centavo a share to be issued from the increase in authorized capital stock.

Biomass facilities

Greenergy earlier revealed that its board of directors granted the company head the authority to enter into negotiations with Grateful Strategic Marketing Consultants Co. Ltd., a Taiwanese biomass management company which currently operates two biomass facilities.

Greenergy had said that it was looking at a “possible acquisition,” but did not provide more details.

It was not made clear whether the acquisition pertained to acquiring the biomass plants or a stake in the company.

Greenergy Holdings was also looking to invest at least $1.3 billion—roughly P55 billion at the prevailing exchange rate—to develop wind power projects in the Philippines over the next 10 years.

It had said that it teamed up with China-based Tianjin Tianbao Investment and Development Corp. (TTIDC) for a joint development, funding and operation of these proposed renewable energy projects.

A memorandum of agreement was earlier signed between the two parties.

Joint venture vehicle

Under the agreement, the two companies would establish a joint venture vehicle to plan the development of the wind energy projects that could generate at least 1,000 megawatts.

An initial investment of $200 million for the wind energy projects is expected in the next two years.

The agreement also stated that the parties would need to plan the establishment of the first turnkey project, a 49.5-megawatt (MW) wind energy project composed of 33 units of 1.5-MW wind mills.

The project is expected to be operational within one year from the time the joint venture vehicle is established, Greenergy Holdings said.

Wind power sites

The company, however, did not identify the potential sites it was eyeing for the wind power projects.

Under the agreement, the parties may also consider other renewable projects such as biomass, solar, hydro and geothermal resources, but in the first two years of the joint venture vehicle, the focus will be on wind energy projects.