National Grid Corporation of the Philippines, which operates the country’s electricity transmission assets, expects power demand to grow 6.6 percent annually from 2025 to 2040.
NGCP chief finance officer Nanette Bugnosen said during an investors’ briefing for Synergy Grid & Development Corp. the increase in electricity demand and capital expansion would support the growth of the company. Synergy Grid indirectly owns a majority stake in NGCP.
“The gap in electricity usage between the Philippines and its peers implies room for significant potential improvement,” Bugnosen said.
NGCP earlier allotted P160 billion in capital expenditures from 2021 to 2025. It also committed to spend P440 billion worth of projects from 2021 to 2033. The funding will come from internally generated funds and bank loans.
Synergy Grid chairman Henry Sy Jr. said the share sale of Synergy Grid would allow investors to participate in one of the country’s strongest companies.
“As the country recovers from the pandemic, the need for stable and reliable power becomes even more critical. SGP through NGCP recognizes this and continues to introduce innovation in the country’s power transmission network,” Sy said.
“Priced at a very attractive level of P12 per share your participation in our follow-on offering will allow us to pursue our projects and ensure reliability and security in the years ahead,” Sy said.
Synergy Grid is selling up to 1.15 billion common shares including over-allotment option.
The proceeds will be used for subscription to the non-voting preferred shares to be issued by the NGCP, which the latter will use to finance capital expenditures and related costs and expenses.
The follow-on offering is scheduled on Oct. 26 to Nov. 2, with the shares to be listed on the PSE on Nov. 10.
Synergy Grid tapped BofA Securities and UBS AG Singapore Branch as joint global coordinators and joint bookrunners for the transaction.
BDO Capital & Investments Corp. will serve as sole domestic coordinator and will act as joint domestic lead underwriter and joint bookrunner alongside BPI Capital Corp. and PNB Capital and Investment Corp.