Costa Rica's State Run Power Company to Issue Shares

The National Power and Light company is preparing for midyear to issue preference shares for an amount estimated at between $50 and $100 million.

Monday, January 19, 2015

In order to address the financial crisis, improve the equity structure and pay in 2017 $28 million in bond debts, the Compañía Nacional de Fuerza y ​​Luz (CNFL) will be issuing preferred shares for an estimated $50 to $100 million. To date there has not been any confirmation of the number of shares to be issued.

Rolando Güell, Partner at the Auditing company Deloitte, told Nacion.com that "... When a company increases its equity the maneuver causes a decrease of its liabilities and increases its borrowing capacity. Therefore this strategy would generate a significant improvement in the financial statements. "

"... The Instituto Costarricense de Electricidad, owns 98.6% of the common shares of the CNFL and the rest belongs to private entrepreneurs. In 2013, of the $9.1 million net income, minority shareholders received $168,000, according to financial statements. "

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