Japanese company to invest US$ 2 million in Sri Lanka to expand renewable energy generation
Japan’s SBI Group has reportedly decided to invest US$ 2 million in Sunshine Energy to further expand on renewable energy production in Sri Lanka.
Sunshine Holdings PLC (CSE: SUN) has released a statement to the media announcing that SBI Ven Holdings (Pte) Limited, the overseas private equity firm of SBI Holdings Inc., has invested US$ 2 million in Sunshine Energy (Pvt) Ltd (SEL) to propel Sunshine Holdings’ renewable energy production projects further.
The strategic investment reportedly offers SBI Ven Holdings a 30% stake in Sunshine Energy Ltd.
Sunshine Group has been exploring the renewable energy sector since 2012 and Sunshine Energy Limited — a fully-owned subsidiary of the Group — has a 6.6 MW capacity generated through three mini-hydropower plants in the Lindula region, the local media has reported.
The company’s quest towards green energy production gathered momentum in February 2019 when SEL installed its first rooftop solar PV systems in Kelaniya and with three rooftop solar projects in multiple locations, SEL contributes a combined capacity of 7.1 MW, reports further state.
Accordingly, Sunshine renewable energy business sits squarely in the nation-building space, with the potential to contribute significantly towards the annual 6-7% increase in power demand. In the near future, Sunshine Group looks to increase their contribution to the national grid to 15MW while also exploring other forms of renewable energy, including wind and biogas project.
Speaking on their latest association with Japan’s financial giant, Sunshine Holdings Group Managing Director Vish Govindasamy has been quoted as saying, “At a time where the investor confidence and sentiment have been greatly affected, SBI Ven Holdings’s investment on Sunshine Energy brings in vital foreign direct investments (FDI) to Sri Lanka when it is much needed in the market and the economy. Not only this strategic investment paves a path for us to support the government’s vision of sourcing 100% renewable electricity by 2050, but it also validates our long term vision and investor-friendly corporate governance framework, helping us to build confidence and attract leading global equity firms like SBI Ven Holdings.”
The SBI Group, spearheaded by the visionary President and CEO Yoshitaka Kitao, is a key player in the Japanese securities industry and has keen interests in the financial services, healthcare, and energy sectors in Japan.
OSL take:
The investment by a Japanese company in a renewable energy generation programme in Sri Lanka through a joint venture with a local company indicates the expanding business/investment opportunities in Sri Lanka’s power and energy sector as well as the inflow of foreign investments to the country. Foreign investments are flowing in to the country following the setback suffered in the aftermath of the Easter Sunday attacks. Also, the looming power crisis in the country has created many business/investment opportunities in Sri Lanka’s power and energy sector.
| Article Code : | VBS/AT/31072019/Z_1 |