RBC Trust to become largest shareholder in MPC Caribbean Clean Energy in debt-to-equity swap

Core Viewpoint - RBC Trust (Trinidad & Tobago) Limited is set to become one of the largest shareholders of MPC Caribbean Clean Energy Limited by converting a US$10 million promissory note into equity, significantly altering the company's ownership structure [1][2]. Ownership Structure - The board approved the conversion of the US$10 million Convertible Promissory Note into 10 million new Class B shares, pending regulatory approval, increasing the total Class B shares from 26.94 million to 36.94 million [2]. - Post-conversion, RBC Trust will hold approximately 27% of MPC's outstanding shares, positioning it as one of the most significant investors in the company [2][4]. Market Listing - MPC intends to list the new shares on both the Trinidad and Tobago Stock Exchange and the Jamaica Stock Exchange [3]. Shareholder Dynamics - The transaction will shift MPC's ownership profile, with RBC Trust potentially becoming the largest Class B shareholder, surpassing current major shareholders like Teachers Credit Union and MPC Capital AG [4]. Company Portfolio - MPC owns renewable energy assets in the Dominican Republic, Costa Rica, and El Salvador, having exited the Jamaican market in April 2025 [5]. - The company's portfolio includes the Monte Plata solar facility, Tilawind wind farm, and San Isidro project, collectively generating nearly 34 gigawatt-hours of electricity in the December 2025 quarter, while avoiding over 12,000 tonnes of carbon emissions [5]. Financial Performance - For the fourth quarter ended December 2025, MPC reported a comprehensive loss before tax of US$348,000, an improvement from a US$1.4 million loss in the same quarter the previous year [6]. - Operational performance varied, with the San Isidro project performing well, while Tilawind faced challenges due to weaker wind conditions and technical issues, and Monte Plata dealt with grid limitations [6]. Strategic Implications - The RBC conversion, if approved, will integrate a prominent Caribbean financial institution into MPC's shareholder base, potentially enhancing liquidity and visibility for the stock, which currently trades thinly on both exchanges [7].