Sri Lanka’s LVL Energy Fund to expand investments in South Asia and Africa

Sri Lanka’s LVL Energy Fund to expand investments in South Asia and Africa

Sri Lanka’s LVL Energy Fund is reportedly looking at expanding its investment portfolio in South Asia and Africa.
LVL Energy Fund has raised Rs. 1.2 billion with a public offering of a 20.6% stake in the company in December 2017. A share was priced at Rs. 10, which was 2.04 times net asset value as at end March 2017.
The share traded on the Colombo Stock Exchange (CSE) for the first time on Tuesday, closing 10 cents higher at Rs10.10.
“We love investing in Bangladesh and Nepal because they make it easier to invest, and energy pricing is clear and transparent,” Sumith Arangala, Chief Executive at LVL Energy Fund has been quoted as saying in the media.
“We’re exploring investment opportunities in hydropower in East Africa.”
The Company reportedly operates two 50 MW thermal power plants in Bangladesh.
“The thermal power potential there is around 150,000 MW, it’s huge. Nepal has a hydropower potential of 40,000 MW and we’re investing Rs. 465 million on a 10 MW plant there,” LVL Chief Executive has said.
The company operates five hydropower plants through joint ventures in Sri Lanka with a combined capacity of 17 MW and two wind power projects with a combined capacity of 15.6 MW, reports state.
It will invest IPO funds on two new hydropower plants in Sri Lanka with a combined capacity of 4MW, and also retire debt.
The company has reported a profit of Rs. 465 million for the year ending end March 2017, giving shareholders an 18.73 percent return.

OSL take:

The success of Sri Lanka’s LVL Energy Fund could serve as an indicator for other local businesses engaged in the energy sector to expand their business portfolio.

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Article Code : VBS/AT/20180111/Z_2

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