Invest Energy establishes Joint Venture with European ESG Fund for investments in SE Asia

Invest Energy establishes Joint Venture with European ESG Fund for investments in SE Asia
  • Invest Energy has secured a partnership with SUSI Partners AG, creating a joint venture dedicated to financing and operating clean energy and energy efficiency projects across Southeast Asia.
  • Joint venture combines Invest Energy’s capabilities in developing and operating energy efficiency projects in SE Asian markets with SUSI’s extensive experience in providing capital for energy efficiency in Europe.
  • Invest Energy aims to announce 3 investments into clean energy and energy efficiency projects within second half of 2021.

KUALA LUMPUR, 19 JULY: Invest Energy, a leading clean energy and energy efficiency solutions developer & investor based in Malaysia, is establishing a joint venture with the leading Swiss Fund Manager, SUSI Partners AG, (SUSI) dedicated to financing and operating clean energy and energy efficiency infrastructure projects across Southeast Asia (SEA).

The joint venture with SUSI through its SUSI Asia Energy Transition Fund (SAETF), will provide clean energy and energy efficiency solutions under long-term build-own-operate-transfer basis for commercial and industrial clients. This allows customers to reduce their electricity costs and Green House Gas (GHG) emissions with no upfront capital.

The two parties had signed an agreement that will see investments of up to USD$130 million into SEA in environment friendly, clean energy and energy efficiency projects that help reduce greenhouse gas emissions. The shareholder agreement was signed by Mr Anand Ramakrishnan, Invest Energy’s Founder and Managing Director and Mr. Wymen Chan, Managing Director, Asia Investments signed for SUSI Partners.

As part of its first investment drawdown, a planned investment of up to USD$30 million is expected to develop a number of clean energy and energy efficient projects in SEA which is aimed to be announced within the second half of this year.

Invest Energy and SUSI Partners aim to be inclusive in the clean energy and energy efficiency industry by combining their respective expertise in project development and in financing energy transition to contribute towards meeting climate change targets in SEA.

“With several successful projects in Malaysia, this partnership will help accelerate Invest Energy’s growth and propel it to expand further into SEA,” Mr Ramakrishnan added.

Invest Energy is a leading sustainable Infrastructure-as-a-Service (IaaS) energy solutions developer focusing on renewable energy (RE), clean energy (CE) and energy efficiency (EE) projects in the region. Its joint venture partner, SUSI Partners, brings its longstanding experience investing in energy efficiency projects in Europe to SEA. This is SUSI Partners’ first investment in SEA.

Mr Ramakrishnan explained that the joint venture, to be based in Singapore, is dedicated to financing and operating clean energy and energy efficiency infrastructure projects across Southeast Asia and will benefit businesses as a result of clean energy, reduced energy costs and improved efficiency. It will also enhance their brand image as an important contributor to ESG goals worldwide.

He added that this collaboration will enable both Invest Energy and SUSI Partners to amalgamate knowledge and access to cross border deals and facilitate the deployment of capital.

COVID-19 pandemic has intensified the transition towards clean energy and almost every country in the world has set their own respective targets to achieve net zero carbon emissions.

In addition to offsetting increase in energy demand, energy efficiency projects enhance both energy security through reduced reliance on energy imports and economic competitiveness by lowering costs for energy consumers.

“Invest Energy’s future plans and commitments are in line with SUSI Partners vision of achieving global carbon neutrality. Moving forward, we aim to keep investing in projects as per our mandate and growing our portfolio,” Mr Ramakrishnan said.

Currently, Invest Energy is pursuing opportunities in Vietnam and Malaysia, and actively looking across SEA for development opportunities.

Despite the difficult environment, due to the Covid-19 pandemic, SAETF has raised commitments from a number of DFIs including the Asian Infrastructure Investment Bank (AIIB), Dutch development bank FMO, Nordic DFIs Norfund and Swedfund. Private institutional investors from Germany and Singapore added to the first closing.