QCOSTARICA – The Compañía Nacional de Fuerza y Luz (CNFL) – National Power and Light company is preparing for midyear to issue preference shares for an amount estimated at between US$50 and US$100 million.
In order to address the financial crisis, improve the equity structure and pay in 2017 US$28 million in bond debts, the CNFL (a division of the Instituto Costarricense de Electricidad – ICE) will be issuing the preferred, though 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. ”
“… ICE, owns 98.6% of the common shares of the CNFL and the rest belongs to private entrepreneurs. In 2013, of the US$9.1 million net income, minority shareholders received US$168,000, according to financial statements. ”
Source: Nacion.com
