Synergy Grid and Development Philippines Inc. declared its second quarterly cash dividend amounting to 26 centavos per share, higher than the 22 centavos previously distributed and paid out last April.
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 Corporation of the Philippines (NGCP) using the proceeds of the SGP follow-on offering (FOO) last November 2021. 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. This resulted in a higher dividend yield of 8.66 percent per annum at SGP level,” said Henry T. Sy Jr., chairman of SGP.
For his part, SGP vice chairman Robert Coyiuto said the distribution of dividends reflects the company’s commitment to its partner investors.
Prior to its first quarterly dividend payout last April, SGP also distributed dividends in January amounting to 20 centavos per share.
NGCP is SGP’s sole operating asset. It 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 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.
NGCP holds a 25-year concession and a 50-year Congressional franchise to expand and operate the country’s power transmission grid.