Oct 18

PFI Issue 606 - July 26, 2017

Smart Project – Muara Laboh

With the growing demand for clean energy, geothermal energy offers an alternative and Indonesia boasts huge geothermal resources, estimated at 29GW. The launch of Muara Laboh geothermal power project, which has been prioritised under PLN’s power supply business plan in 2015, is timely. It will provide about 80MW of capacity and there are plans to expand. The project company is Supreme Energy Muara Laboh (SEML), set up by Supreme Energy of Indonesia, Sumitomo Corp and Engie. It raised a 20-year US$440m loan facility provided by the Asian Development Bank (ADB), the ADB-managed Leading Asia’s Private Infrastructure Fund (LEAP), Japan Bank for International Cooperation (JBIC) and MUFG, Mizuho and SMBC under a guarantee from Nippon Export & Investment Insurance (Nexi). Latham & Watkins was the legal adviser to the lenders while Milbank Tweed was legal adviser to the borrower.

Smart City Developer – Tuas Power

Tuas Power is one of the largest power generation companies in Singapore, having a total installed capacity of 2,577MW. The company, originally a wholly owned subsidiary of Temasek Holdings, was acquired by China Huaneng Group in 2008 via its subsidiary Sino-Singapore Power. With growing demand for renewable energy, utilities have to respond to the changes and develop rapidly more efficient use of power, reducing electricity bills. In 2016, Tuas Power rolled out an integrated energy management system to help businesses and building managers get real-time data on their energy consumption, manage usage and oversee their tenants’ electricity accounts, meters and billing. The company is moving into urban desalination, submitting a bid for Singapore’s fifth plant.

Smart Infra Developer - MPIC

Metro Pacific Investments Corporation is a Philippine-based investment and infrastructure holding company of Hong Kong-based First Pacific Company through Metro Pacific Holdings. The company, a key player in the construction and operation of infrastructure projects, is a trailblazer that has set a high standard for infrastructure development in the country. Through its subsidiaries, it provides critical infrastructure that includes water supply and waste treatment, sanitation, sewerage services, hospitals and also invests in toll roads, light rail and power generation and distribution across Luzon and the Visayas. Responding to the government’s initiative for traffic decongestion, the firm, through subsidiary Metro Pacific Tollways Corp (MPTC), plans to spend US$2.5bn in the next five years building highways and toll roads in the Philippines.

Smart Seed Investor – InfraCo Asia

InfraCo Asia has been a successful seed investor, funding the development of high risk infrastructure projects at an early stage to reduce entry costs for private sector investors. The company is a donor-funded, commercially managed infrastructure development company. Since its start in 2010, InfraCo Asia has successfully developed and reached financial close for a number of projects that include a hydropower project in Vietnam and two wind power projects in Pakistan, all of which have completed construction and are now in operation. It is also currently developing a pipeline of projects including agri-infrastructure projects in India, Cambodia and Myanmar; a waste-to-energy project in Sri Lanka; and renewable energy projects in India, Nepal, and the Philippines.

Smart Funder – Greenko

Greenko is a major participant and investor in the growing Indian renewable energy industry. The group, which is owned by GIC, Singapore’s wealth fund, and the Abu Dhabi Investment Authority (ADIA), has a clean energy operating portfolio of over 2.5GW and it plans to add at least another 500MW by the end of 2017. The portfolio includes wind, solar, hydropower, natural gas and biomass assets in 13 states in India. The company has just raised a US$1bn. Green bond, the world’s largest, to fund its portfolio via Barclays, Deutsche Bank, Investec, JP Morgan and Morgan Stanley.

Smart Project - Sunseap Asset

Sunseap Group of Singapore is helping Cambodia meet its renewable targets. Through SPV Sunseap Asset (Cambodia), it is developing a 10MW solar power project, the country’s first large-scale solar project. It successfully raised a US$92m loan that was provided by the Asian Development Bank, the Canadian Climate Fund and BRED Bank of France. Legal advisers are Watson Farley & Williams for the borrower and Hunton & Williams for the lenders. Sunseap won the tender in a competitive bidding in August 2016 to develop Cambodia’s first significant solar project. The company is the largest clean energy provider in Singapore with over three decades of experience.

Smart Project - Sidrap Wind

Giving Indonesia its first utility-scale wind farm project are UPC Renewables and AC Energy Holdings of the Ayala Group in the Philippines. The two partners have raised financing for the Sidrap wind farm project being developed via SPV UPC Sidrap Bayu Energi. The plant, with a 75MW capacity, is in South Sulawesi. Total project cost is estimated at US$150m and debt financing of about US$120m was provided by SMBC and OPIC for the development, construction, commissioning and operation of the wind farm. Legal adviser to the borrower was Baker McKenzie and member firm Hadiputranto, Hadinoto & Partners.

Smart Project - Quantum Solar Energy

Quantum Solar Energy is introducing Malaysia’s first Green sukuk facility to finance a M$1.24bn (US$295m) solar park project. It is raising up to M$1bn of green sustainable and responsible investment (SRI) sukuk via CIMB and Maybank. The sukuk will be issued through wholly owned Quantum Solar Park Semenanjung and the proceeds will be used to finance the construction of three 50MW solar PV power plants – Quantum Solar Park (Kedah) in Gurun, Kedah; Quantum Solar Park (Terengganu) in Merchang, Terengganu; and Quantum Solar Park (Melaka) in Jasin, Melaka. Once completed, QSP Semenanjung will be the largest solar power producer in the country. The sponsors, sharing equal stakes, are ItraMAS Technology, MalTechPro, and CamLite. The EPC contract has been awarded to Scatec Solar.