A financing Company Owned by the Electric Cooperatives
ILECO III & LEYECO V Additional Investments
In 2016, the Rural Electrification Financing Corporation (REFC) released Php241,681,590 in loans to fund projects of borrowing member-ECs intended to improve their operation and financial viability.
With the company showing steady growth in lending activity, member-Electric Cooperatives (ECs) are seeing value for their money and showed their support by putting in additional investments to beef up the funding resources of their very own corporation. This is in response to the REFC Management’s call for additional subscription from its investor-ECs.
The Iloilo III Electric Cooperative, Inc. (ILECO III) passed Board Resolution No. 79, Series of 2016 for an additional investment of 3,500 shares or Php3,500,000, and paid it in full. ILECO III now owns 4,621 shares equivalent to Php4,621,000.
Similarly, the Leyte V Electric Cooperative, Inc. (LEYECO V) made an additional investment of 5,590 shares or Php5,590,000 through Board Resolution No. 04, Series of 2017 making the coop’s total investment to 10,000 shares or Php10 Million.
The additional investments of ILECO III and LEYECO V were approved by the REFC Board during its regular meeting held on February 21, 2017.
“The recent equity contributions of these ECs increased the total subscribed shares to 85.72% of the Company’s authorized capital, indicating that additional capitalization may have to be presented at the next Stockholder’s Meeting come August 2017 to keep up with its growing business.” said REFC Board President Gabriel Tordesillas.
REFC has consistently distributed stock dividends out of its retained earnings since 2007.