Invest Energy plans RM2.2b investment with European ESG fund

Invest Energy plans RM2.2b investment with European ESG fund

KUALA LUMPUR: Invest Energy plans to invest about RM2.2bil over the next five to seven years in partnership with a global European ESG fund and increasing foreign investments in Malaysia.

In a statement on Monday, the infrastructure-as-a-service (IaaS) company which focuses on renewable and clean energy sector, said it was increasing its presence and investments in Malaysia and South East Asia.

“An announcement on this will be made soon, ” it said, as it plans to invest and develop strategic sizeable renewable energy projects in South East Asia in line with its vision to achieve carbon neutrality and help decarbonise economies.

Founder and group managing director of Invest Energy Group Anand Ramakrishnan said: “We are in the midst of finalising agreements for investments in projects worth around RM96mil in Malaysia and Vietnam. Another RM145mil will be invested in Malaysia by the third quarter of 2021, ”, said.

These projects represent about 90MW of distributed energy and renewable energy plants in Malaysia and Vietnam.

Anand said with Invest Energy’s strong track record and in partnership with a large reputable ESG fund, as a joint venture partner, it will grow its portfolio.

“We are currently negotiating projects with additional generating capacity of almost 150MW, ” he said.In addition, Invest Energy is disposing two of its units – Konpro Industries Sdn Bhd (KISB) and Meru OneSdn Bhd (MOSB). The entire equity (100%) is to be disposed for RM32mil, including debt.

KISB operates a 2MW waste-heat-recovery power Plant (WHRPP) in Negeri Sembilan with a 11-year concession.

MOSB operates a 2MW co-generation plant in Selangor has an eight plus eight year concession agreement.

Both plants operate 24/7 under Invest Energy’s proprietary build, own, operate and transfer (BOOT)model with multinational companies.

Anand said: “As these companies are long-term cash 􀃙ow generating and bankable, there were offers from various private and listed companies”.

Negotiations began about a year ago and are expected to be completed in the next three months, subject to condition precedents and internal approvals.

Both buyer and seller have agreed to the deal in principle, and the announcement will be made within the next 60 to 90 days.

"The asset monetisation exercise will strengthen our balance sheet and our position to acquire and develop larger distributed energy and renewable energy assets immediately" Anand said.

The company aims to be the largest multi-asset renewable energy player with generating capacity of between 500MW and 750MW over the next five years.

Invest Energy’s investments will continue to be a mix of distributed energy, renewable energy, energy storage and energy efficiency.