Listed company MPC Caribbean Clean Energy Limited has acquired a solar park in El Salvador with no details being furnished of the sale price.

MPC Caribbean Clean Energy, which is a renewable energy investment company that is based in Barbados and listed on the Jamaica Stock Exchange (JSE) as well as the Trinidad and Tobago Stock Exchange, announced the purchase of the solar park in a filing posted on the JSE website on Thursday, December 24.

In its filing, “MPC Caribbean Clean Energy Limited (MPCCEL) has advised that on December 22, 2020, MPC Caribbean Clean Energy Fund LLC, the Investment Company of MPC Caribbean Clean Energy Limited, has signed the acquisition of the 6.4 MWp (megawatt power) solar park, San Isidro in El Salvador. The acquisition is subject to customary conditions and expected to be closed in Q1 2021.”

The commercial operations date is scheduled for early January 2021. The Jamaican and TT listed company reports that San Isidro solar park will help to avoid an estimated 36,000 tons of carbon dioxide (CO2) emissions throughout its lifetime.

New investor on board recently

Last month Our Today reported that MPC Caribbean Clean Energy has just clinched a US$10-million financing deal with an unnamed investor. Arising from the deal the company will issue a non-voting convertible promissory note in the amount of US$10-million to the accredited investor.

This investor is mandated to raise capital to be invested in MPC Caribbean Clean Energy Fund, the investment arm of the company. A US$10-million promissory note is to be issued and dated as of November 6.

The funds raised from the promissory note are to be used for capital expansion and renewable investment opportunities given MPC Caribbean Clean Energy’s primary mandate. The company is investing in significant growth potential in renewable energy projects in the Caribbean region, where these energy sources are increasingly becoming an economical form of new electricity generation.

In its JSE regulatory filing, MPC Caribbean Clean Energy Director, José Fernando Zuñiga Galindo stated that, “the note will entitle the holder to receive (from time to time) distributions equivalent to the dividends approved by the directors of the company to be paid from time to time to holders of Class B shares with each US$1 of the principal of the Note corresponding to one Class B share”. This will be limited to a maximum of eight per cent per annum in aggregate in any one year.

If the principal sum of the note has not been paid in cash upon the maturity date of March 31, 2023, the note will convert into Class B shares in the company. However, this will be subjected to the prior approval of such conversion at a shareholders’ meeting of the Caribbean renewable energy company.

US$9.20 million poured into investment arm

Earlier this year, MPC Caribbean Clean Energy invested some US$9.29 million in its investment arm, MPC Caribbean Clean Energy Fund LLC, which is domiciled in the Cayman Islands. MPC Caribbean Clean Energy Fund focuses primarily on solar PV and wind projects, which are expected to account for between 80 per cent to 100 per cent of overall investment.

The investment company was incorporated in 2017.