EEI board OKs 20-M preferred share issuance

EEI CORP. is tapping the capital market to raise more funds to help clear the company’s debts and fund its upcoming projects, the listed construction company said on Wednesday.

In a stock exchange disclosure, EEI said its board of directors had approved the issuance of 20 million preferred shares priced at 50 centavos apiece from its unissued preferred shares.

The company said that the shares will be offered via a private placement with RCBC Trust Corp. as its investment manager.

Proceeds from the capital raising will strengthen the company’s balance sheet and will also pay its working capital loans, the company said.

EEI said net proceeds from these will also fund the company’s future projects, as well as general and working capital requirements.

The company said the preferred shares will be cumulative, non-voting, non-participating, non-convertible, and redeemable shares, adding that the shares are perpetual unless EEI decides to redeem the shares seven years from issuance.

For the third quarter, EEI incurred an attributable net loss of P31.75 million from an attributable net income of P406 million in the same period last year due to lower revenues for the period.

The company generated P3.14 billion in gross revenue for the third quarter, 27.8% lower than the P4.35 billion previously.

For the July-to-September period, EEI’s gross expense went down by 0.5% to P3.64 billion from P3.66 billion last year.

At the stock exchange on Wednesday, shares in the company closed nine centavos, or 2.37% lower, at P3.71 apiece. — Ashley Erika O. Jose