reNIKOLA Holdings Aims To Raise $438 Million For Southeast Asian Renewable Energy Projects

Malaysia’s reNIKOLA Holdings, a renewable energy company, plans to raise up to 2 billion ringgit ($438.4 million) in the next three years to fund various projects, including solar initiatives across Southeast Asia, as revealed by the managing director, Boumhidi Adel, in a statement to Reuters.

In August, the Kuala Lumpur-based firm will issue a 390 million ringgit Islamic bond or sukuk, making it the first sukuk to obtain climate bonds certification. Climate bonds certification denotes bonds whose assets and projects contribute to building a low-emission economy.

The company, in which Thailand’s B.Grimm Power holds a 45% stake, is also targeting a reverse takeover of a Malaysian shell company, Pimpinan Ehsan, by the first quarter of 2024. This action is anticipated to raise additional equity for the company to support further development of renewable energy projects.

ReNIKOLA’s operational and under-development renewable projects total 178 megawatt-peak (MWp), but the company aims to grow this to 1 gigawatt-peak (GWp) over the next three years. While Malaysia remains the primary focus, reNIKOLA is exploring opportunities for projects in ASEAN and South Asia and is also considering ventures in other renewable energy sectors, including biogas and green hydrogen, and solar.

With increasing demand for air conditioning and growing concerns over power grid limitations and climate change, South and Southeast Asia are witnessing rapid adoption of renewable power solutions. The International Energy Agency has predicted that global investment in clean energy will surpass spending on fossil fuels this year, reinforcing the growing momentum toward sustainable energy solutions.