Funding to come from its to J$5.8-billion secured corporate bond issue

Durrant Pate/Contributor

Jamaican renewable energy company, Wigton Windfarm Limited, has made a major land acquisition as it pushes forward with its expansion plans.

The publicly listed energy company has entered into an agreement for sale for the purchase of land at Lot 28 Ferry Pen in St Andrew at a cost US$1.55 million. No details were provided about the use of the land but it is understood that it will form a crucial part of the company’s expansion plans.

Funding for the acquisition is to come from Wigton’s secured corporate bond issue of up to J$5.8 billion in two tranches. Tranche 1 will be for up to J$3.9 billion with a coupon rate of 6.3 per cent maturing in 4.5 years and expiring in September 2026 and Tranche 2 will be up to J$1.9 billion with a coupon rate of 7.25 per cent, maturing in five years and expiring in March 2027.

Diversification plans

As part of its expansion plans last year, Wigton diversified into the electronic vehicles market. This was done through its equity stake in Flash Holdings Limited (FHL), which is the sole shareholder of Flash Motors Company Limited, a company incorporated in Jamaica which will distribute and sell electric vehicles.

Wigton acquired a 21 per cent stake in FHL, which is a company incorporated in St Lucia as a pure equity holding company. The investment was a continuation of Wigton’s efforts to grow the business by investing in new ventures, being ready to respond to any new calls for additional renewable energy to the national grid, establishing partnerships and continuing to prudently manage expenses as the primary focus areas of management.