Synergy Grid board OKs ₧1.35B dividend payout

SYNERGY Grid and Development Philippines Inc. (SGP) has declared dividend payout of P1.35 billion, to be settled next month.

In a disclosure to the stock exchange Thursday, SGP said its board approved its second quarterly cash dividend at P0.26 per share, P0.04 higher than the P 0.22 per share dividend previously distributed and paid out on last April 26.

The cash dividends will be payable on July 22 to stockholders on record as of July 6.

The declaration of a higher dividend per share is a result of the recent investment of SGP in preferred shares issued by the National Grid Corp. of the Philippines (NGCP) using the proceeds of the SGP follow-on offering (FOO) last November 2021, the company said.

The SEC approved the issuance of the preferred shares of NGCP early this month, which entitled SGP to direct dividends from NGCP on the preferred shares, according to SGP Chairman Henry T. Sy Jr.

This resulted in a higher dividend yield of 8.66 percent per annum at SGP level, Sy added.

SGP, the listed holding company of Sy and Roberto G. Coyiuto Jr., indirectly controls 60 percent of the outstanding common shares of NGCP, with an effective common share interest of 40.2 percent.  SGP likewise owns 203,200,000 non-voting preferred shares of NGCP.

“The distribution of dividends is a testament of SGP’s commitment to its partner investors,” SGP Vice Chairman Coyiuto Jr. said. “We thank the investing public for their trust and confidence in SGP which contribute to the development of the nation’s sole transmission network operated and maintained by NGCP.”

NGCP, SGP’s sole operating asset, holds the sole and exclusive concession and franchise for the operation of the Philippines’ transmission network, linking power generators and distribution utilities to deliver electricity to power distributors and cooperatives nationwide.

In the next 13 years, NGCP is committed to invest approximately P440 billion across 211 projects which are aimed to support the growing electricity demand in the country and to make the country’s power backbone continuously reliable.