TOKAI Corporation of Japan is investing an additional P3.43 billion in publicly-listed renewable energy firm Repower Energy Development Corporation, a subsidiary of Pure Energy Holdings Corporation, to double its stake to 20.1 percent.

In a statement, REDC said TOKAI Corporation is the consolidated subsidiary of TOKAI Holdings Corporation, a Japan-listed conglomerate engaged in the energy business, such as the sale of liquefied petroleum gas.

TOKAI will purchase an additional 65.1 million shares equivalent, to a 10.1 percent interest in REDC to increase its of REDC, at P7.47 apiece, which was based on the average daily volume-weighted average price from Jan. 1 to 31.

The Japanese firm was an anchor investor to REDC’s initial public offering by purchasing a 10 percent stake. 

The additional investment will be made in the week of Feb. 12, and will entitle TOKAI to a seat in REDC’s board. 

“This is part of TOKAI’s initiatives to achieve carbon neutrality throughout its operations by 2050, and signifies confidence in REDC’s profitability and long-term growth potential,” REDC said.

REDC President and CEO Eric Peter Y. Roxas said “TOKAI’s additional investment in REDC signifies the strengthening partnership between the two companies, will enhance the corporate value of REDC, and it shall create synergy for both of us in developing projects locally and internationally.”

He noted that “this additional capital shall serve as fuel for our expansion plans as we look to build a presence in markets we have yet to serve.”

Primarily known as a developer of run-of-the-river hydropower plants, REDC recently completed the development of its 5.8 MW Tibag plant and 1.4 MW Lower Labayat plant in Quezon. These two plants are expected to increase REDC’s overall power generation capacity by 50 percent.

Two more plants are currently under construction, with the 15 MW Cabanglasan plant in Bukidnon expected to be commissioned ahead of schedule in 2025.