Energy start up to tap private funds
Caribbean Energy Finance Company Limited (CEFCL), having failed to garner sufficient subscriptions for its $452-million initial public offering, is trying to woo backers for its renewables equipment-leasing business in Jamaica and the wider Caribbean.
On Monday, CEFCL Director Leo Williams said the start-up company aims to launch with less capital than the amount sought in the public invitation, and this time, from private investors. The new target for funds was not disclosed, nor whether backers were being sought for equity or debt financing.
CEFCL aims to underwrite industrial, commercial and large residential renewable energy projects and earn revenue from the leasing of installations. Its clients, whether businesses or individuals, will own the installations when the lease term ends in 10 years. The company also plans to earn from maintenance services, energy audits and cogeneration.
In April, CEFCL's founders - businessman Damian Lyn and Williams - went to the market stating that they had US$4.8 million in options on equipment waiting to be exercised, but the company did not achieve the minimum take-up required to list.
CEFCL was originally incorporated in August 2007 as Caribbean Wind Energy Limited for the purpose of responding to a Government proposal for renewable energy generation, but has not been operational.