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Asia Greentech Fund (“AGTF” or “Fund”) and Federal International Holdings Berhad (“FIHB”, a listed company in Malaysia) have entered into the final stage to complete the acquisition of two solar plants with a total capacity of 22MW.
The total project cost is expected to be around US$30 million and will be led by a strong team that offers a synergistic partnership.
Asia Greentech Fund Chairman Mr. Michael Ngai said, “We are thrilled with the progress that the Fund has made since we ventured into solar power generation. With FIHB and Sunview as our partners, this helps strengthen the Fund’s capacity to expand our business in the regional renewable energy segment. We will continue to contribute to build a clean and beautiful world.”
Fabulous Sunview Sdn Bhd (“Sunview”), a leading solar power system provider and solar installation company with a total portfolio of more than 200 MW capacity in solar power generation, has been appointed as the technical partner for the project. This is in line with the Fund’s direction as Sunview is one of the largest and most successful engineering, procurement, construction, and commissioning (“EPCC”) players in the solar space in Asia. The appointment of Sunview also fits into the partnership as the Fund is a major shareholder of Sunview. Sunview is also appointed by Malaysia Debt Venture, a subsidiary owned by the Ministry of Finance Malaysia, as an auditor for solar plants.
“Multinational governments around the world understand the importance of developing renewable energy, for example Malaysia Government has set a target of 20% renewable energy in its generation mix by 2025, US$8 billion worth of investment is required in order. The Government knows that the involvements of private financing and public-private partnership are crucial steps to achieve the goal and is willing to provide necessary supports to the Fund,” said Mr. Amin Shafie, Partner of Asia Greentech Fund.
The future plan for the collaboration between AGTF and partners is to create a solar asset cluster of a minimum 200MW capacity. With this plan in place, AGTF and partners target the solar cluster to go for a listing in a regional stock exchange or go listing via securitized token offerings. The listing is targeted before the end of 2023 in order to support the acquisition and growth in its capacity expansion in solar power generation.
AGTF and partners will also explore the acquisition of brownfield assets that immediately generate operating cash flow. This strategy will help to accelerate the push into the solar and green energy sector as the positive cash flow could sustain the development.