International Finance
Corporation, the private lending arm of the World Bank, is partnering a
Singapore-based private equity firm to invest in Gia Lai Electricity JSC (GEC),
one of Vietnam’s largest private-sector independent small hydroelectric power
producers.
IFC together with a private equity fund based
in Singapore proposes to invest up to 36% equity stake in GEC, according to its
investment disclosure. The investment is meant to support GEC’s renewableenergy development plans in Vietnam.
The quantum of
investment as also the name of the PE investor were undisclosed.
GEC is 87% controlled by Thanh Thanh Cong
Group (TTC), a Vietnamese conglomerate founded by Mr Dang Van Thanh in 1979.
TTC is Vietnam’s largest private sugar manufacturer. It also has 79 MW biomass
power plant portfolio owned by its various sugar business units.
Mr. Thanh was also the
founder and chairman for 20 years of Sacombank, one of the largest commercial
banks in Vietnam
TTC has identified its
next growth opportunity in renewable energy, and set a medium-term strategy to
grow GEC into a leading renewable energy business in Vietnam. GEC is thus also
considering wind and solar projects in addition to hydel power plants, the
filing said.
Founded in 1989,
GEC owns and operates 15 existing hydro
power projects totaling 84 MW in installed capacity. Majority of its portfolio
comprises small hydro power projects (HPPs), ranging from 0.3MW to 16MW.
GEC’s business model
consists of the development and acquisition of small HPPs, wind and solarprojects. While GEC’s ownership varies from project to project, it assumes an
active role in design, construction, and operation depending on the project
stage.
GEC is located in Gia Lai province, in the
Central Highlands of Vietnam. Many of GEC’s existing small hydro power projects
are located in the same province. GEC also has several projects located in
different provinces of Vietnam, mainly in the central area of Vietnam.
IFC has been quite
active in investing, both debt and equity, in Vietnam as also the East Asian
region. Some of its recent proposed investments include a $20-million
commitment in Canadian Solar for its Vietnam foray and an acquisition financing
loan for Golden Towers in the telecom space.
Source: dealstreetasia
