Three months after announcing a deal to acquire a solar park in El Salvador, regional renewable energy company MPC Caribbean Clean Energy Limited has formally taken control of the facility.

This was done this week after MPC Caribbean Clean Energy formally closed the acquisition of the 6.4-megawatt power solar park, San Isidro, in El Salvador on Tuesday, March 2, 2021. No details have been furnished about the sale price but confirmation that the acquisition deal has formally been closed.

MPC Caribbean Clean Energy, which is based in Barbados and cross listed on the Jamaica and Trinidad and Tobago Stock Exchanges, made the acquisition through its renewable energy investment company, MPC Caribbean Clean Energy Fund LLC. MPC Caribbean Clean Energy had announced the purchase of the solar park in a filing posted on the Jamaica Stock Exchange website on December 24.

MPC Caribbean Clean Energy Limited signed the acquisition deal in El Salvador on Tuesday, bringing to a closure to the successful transaction, which was initiated back in December 2020. The solar park started its commercial operation on January 29 this year.

MPC Caribbean Clean Energy Limited has stated that the San Isidro solar park will help to avoid an estimated 36,000 tons of CO2 emissions throughout its lifetime. In its filing back in December, MPC Caribbean Clean Energy Limited reported that, “on December 22, 2020, MPC Caribbean Clean Energy Fund LLC, the Investment Company of MPC Caribbean Clean Energy Limited has signed the acquisition of the 6.4 MW power solar park, San Isidro in El Salvador”.

Last year the renewable energy company invested some US$9.29 million in its investment arm, MPC Caribbean Clean Energy Fund LLC, which is domiciled in the Cayman Islands.

MPC Caribbean Clean Energy Fund focuses primarily on solar PV and wind projects, which are expected to account for between 80 per cent to 100 per cent of overall investment. The investment company was incorporated in 2017.

Last November MPC Caribbean Clean Energy clinched a US$10-million financing deal with an unnamed investor. Arising from the deal the company has issued a non-voting convertible promissory note in the amount of US$10 million to the accredited investor.

This investor is mandated to raise capital to be invested in MPC Caribbean Clean Energy Fund. A US$10-million promissory note was issued and dated as of November 6.

The funds raised from the promissory note are being used for capital expansion and renewable investment opportunities given MPC Caribbean Clean Energy’s primary mandate. MPC Caribbean Clean Energy Director José Fernando Zuñiga Galindo explained that, “the note will entitle the holder to receive (from time to time) distributions equivalent to the dividends approved by the directors of the company to be paid from time to time to holders of Class B shares with each US$1 of the principal of the Note corresponding to one Class B share”.

This will be limited to a maximum of eight per cent per annum in aggregate in any one year. If the principal sum of the note has not been paid in cash upon the maturity date of March 31, 2023, the note will convert into Class B shares in the company.

However, this will be subjected to the prior approval of such conversion at a shareholders’ meeting of the Caribbean renewable energy company.