A financing Company Owned by the Electric Cooperatives
SOLECO and PRESCO infuse more capital into REFC
The Rural Electrification Financing Corporation (REFC) is intensifying its capital build-up by showcasing to the Electric Cooperatives (ECs) the advantage of being member-investors. And with a positive response from the ECs, REFC now has few remaining shares available for subscription from its approved capitalization of Php 700 Million.
Two member-ECs recently infused more capital into REFC, namely: the Southern Leyte Electric Cooperative, Inc. (SOLECO) and the Pampanga Rural Electric Service Cooperative, Inc. (PRESCO), both subscribing 1,000 additional shares. For SOLECO, the coop’s Board believe it is worthwhile and income-generating that their coop pour in additional investment into REFC as manifested in the yearly distribution of returns/dividends to the stockholders. While for PRESCO, the coop regards the corporation as a provider of assured source of funds at the lowest possible lending rate, which helps finance the member-ECs’ operations through various projects.
“The member-ECs are taking advantage of subscribing to the remaining stocks available for subscription as they see value for their investment into their very own corporation,” said REFC President Gabriel Tordesillas. “Sooner or later we would be compelled to increase again our capitalization so as to accommodate those ECs that showed their willingness to invest into the REFC and to expand our growing loan portfolio,” he added.