Philippine-based private equity investor New Wave Strategic Holdings Inc. in partnership with Malaysian government-backed fund Emissary Capital Partners Sdn Bhd, proposed to invest $50 million into the country’s renewable energy market that can help generate as much as 1,000 megawatts (MW) of capacity.
The parties said the proposal was presented to President Ferdinand Marcos, Jr. during his three-day Malaysian state visit last week.
“It is important that the Philippines develops a more mature eco-system with capital providers across various stages of the investment cycle. With Emissary’s entry into the Philippines, we are providing more founders and entrepreneurs access to growth capital as well as a regional network that can help them expand across Southeast Asia… Our value proposition is more than capital. We help businesses scale within the Philippines and can open up regional Southeast Asia access,” said Enrique Gonzalez, New Wave director, in a statement.
The companies identified solar and wind farms in Northern Luzon as an immediate focus of the investment but noted the early stages of RE projects are the most challenging for companies to raise capital due to the perceived risks.
The parties said that equipping developers with additional funding with value-added involvement in pre-development work will translate to attractive returns.
They said the establishment of a 1,000 MW bankable concession can generate an additional foreign direct investment of over $1.5 billion into the country to complete the construction and operation of targeted sites.
Aside from providing financial support, New Wave and Emissary Capital also aim to leverage partnership with engineering, procurement and construction contractors to bring in more energy investors in the country.
New Wave is a subsidiary of local investment holding firm IP E-Game Ventures Inc. Emissary Capital is backed by the Malaysian government’s Penjana Kapital which has invested in some of the leading tech companies in Southeast Asia.
