Emerald Sri Lanka Fund to buy stake at Pan Asian Power to partly finance solar power projects
Emerald Sri Lanka Fund is to take a 20 percent stake in Pan Asian Power (PAP) in a proposed private placement at Rs. 3.20 a share with the money to be used to partly finance solar power projects, the local media has reported referring to a stock exchange filing.
A stock exchange filing has reportedly stated that PAP has decided to issue by way of a private placement 125 million ordinary voting shares to Emerald Sri Lanka Fund I Limited, amounting to a total consideration of Rs. 400 million.
The proceeds of the private placement will be used to part finance several ground solar power projects PAP plans to build this year with a total investment of about 1.3 billion rupees, the statement has noted.
The statement has further stated that Emerald is the largest private equity fund dedicated to Sri Lanka, seeking to make growth capital investments in the range of US$ 2 – 6 million in equity and equity-linked securities.
The Emerald Fund is managed by NDB Zephyr Partners Limited, a joint venture between NDB Capital Holdings Limited with a 60 percent stake and Zephyr Management L.P (USA) holding the rest.
Contributors to the Emerald Fund include NDB Capital Holdings Limited, International Finance Corporation (IFC), Deutsche Investitions –und Entwicklungsgesellschaft mbH (DEG) and Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.(FMO).
OSL take:
Sri Lanka’s power and energy sector is a hive for business/investment opportunities given the looming power crisis. Also the availability of funding for many sustainable energy generation options is an encouraging sign for potential investors to explore business/investment opportunities in Sri Lanka’s power and energy sector.
| Article Code : | VBS/AT/03052019/Z_4 |