Manila Electric Co. said its wholly-owned subsidiary, MGen Renewable Energy Inc., has extended a P6.7 billion one-year loan to could provide with an 11.6 percent of SP New Energy Corp., a listed renewable energy company.
Meralco, as the country’s largest power distributor is more popularly known, said the loan is part of an Exchange Exchangeable Note Facility and Security Agreement with Solar Philippines Power Project Holdings, Inc.
“Under this agreement, MGreen extended a one-year loan of P6.7 billion exchangeable into 5.8 Billion SPNEC shares at maturity,” Meralco said.
If MGreen and its affiliate would increase its shareholdings in SPNEC to 25.3 billion shares , equivalent to 50.5 percent stake in the listed company, if it decides to swap the debt for new shares.
