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 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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