Aqualectra collects 300 million

WILLEMSTAD — The debenture stock of the Integrated Utility Holding (IUH, ‘Aqualectra’) for which interested parties had barely been given three days to respond, appears to have been successful. Aqualectra had collected more than 300 million guilders (300.045.000) between December 19th and 22nd last year, while the company had gone for 240 million. Apparently, financers have more much confidence in the plans and management of this utility company.

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With an interest varying between 4 and 6 percent, this debenture stock yields Aqualectra a relatively cheap capital. For example, the preferential shareholder Marubeni was bought out, to whom Aqualectra had always been forced to pay 16.75 percent interest on its 40 million dollar investment in the utility company. The deposit and interest, coming to Marubeni amounts to approx. 80 million guilders.

Furthermore, a loan of 72 million guilders with a local banking syndicate will be re-financed with an interest advantage: the loan percentage fluctuates between 6 and 7 percent with this consortium loan. The remaining 88 million guilders in the aimed for 240 million guilders, is allocated for counterbalancing deficits in connection with fuel costs over 2008.

Room for tariff decrease
As the cost of capital is a structural component of the utility tariff, this cheaper re-financing offers possible space for tariff decrease.
The utility company has cash in reserve now that more than 60 million guilders has been collected than aimed for.

This debenture stock has durations of six or thirty years. Of course, everyone will receive his/her deposit at the end. The profit depends on the interest percentage as registered by him/her. Furthermore, those registering for one year wish to receive more interest, while others will receive slightly less interest on an annual basis during the duration, but more on the entire duration (‘compound interest’).
As usual with government debentures, the Bank of the Netherlands Antilles fulfilled a mediating role with the sale of the Aqualectra debentures – even though a number of commercial banks would have gladly acted as agent, also to gain the fee.

Another 400 million
After this successful capital pursuit for (re)financings, the utility company wants to make another capital pursuit later this year of at least 400 million guilders for investments.