This is the largest renewable energy acquisition ever, with GIP set to take over 180 assets with a combined capacity of 11,135MW. Credit: Equis
US-based investment fund Global Infrastructure Partners (GIP) and co-investors have acquired Singapore-headquartered Equis Energy, the largest renewable energy IPP in the Asia Pacific region, for US$5 billion along with assumed liabilities of US$1.3 billion.
This is the largest renewable energy acquisition ever, with GIP set to take over 180 assets with a combined capacity of 11,135MW in operation, construction and development across Australia, Japan, India, Indonesia, the Philippines and Thailand.
The transaction is subject to customary regulatory approvals and is expected to close in the first quarter of 2018.
When asked by PV Tech which other companies had been in the running and why GIP was chosen, an Equis spokesperson could only share that "a range of factors were considered".
Having appointed Credit Suisse and J.P. Morgan as financial advisors and global coordinators to conduct a strategic review of its entire renewable energy portfolio back in April, Equis was drawing a high level of interest from prospective investors by July.
David Russell, cheif executive of Equis and chairman of Equis Energy, said: “The investment by GIP and its partners is exciting news for the development of renewable energy in the Asia-Pacific. GIP has a strong track record of managing and growing utility-scale infrastructure businesses, and the combination of experience and knowledge across GIP and the existing management team will allow Equis Energy to continue expanding competitively across its target markets.”
Adebayo Ogunlesi, chairman and managing partner of GIP, said: “Equis Energy is a unique success story in the APAC region as it has systematically executed its growth strategy since its founding five years ago. In that period, Equis Energy has become one of the leading renewable energy platforms in the region, with a best-in-class business model, a high-quality asset portfolio and an outstanding management team. We look forward to continuing the Equis Energy success story in the years to come and to supporting new growth opportunities in one of the most promising renewable energy markets in the world.”
In August, Equis said it would build a 1GW solar project in Queensland that would be the largest in Australia. It has already commissioned a 132.5MW project in the Philippines, claimed to be the largest PV project in Southeast Asia. It has also been awarded a contract by Taiwan’s Bureau of Energy to develop a 70.2MW solar project, which will be the largest in Taiwan.
Solar & Storage Finance Asia returning to Singapore for its 5th edition, will be the meeting point for developers, financiers and investors across the region. Explore in depth the opportunities of the different countries via case studies, business and financial models that will foster growth in the region with particular focus on Thailand, Philippines, Indonesia, Taiwan, Korea, Cambodia, Singapore, Malaysia & Vietnam. The programme has been designed to enable you to win business and understand new opportunities in the market. Key topics include floating solar, project finance for PPAs, modernization of the grid and strategies for structuring and designing hybrid deals.