Singapore – Myanmar-focused Yoma Strategic Holdings is planning to form a strategic partnership with AC Energy, the energy platform of Philippine conglomerate Ayala Corporation. The two companies are looking to establish a 50:50 joint venture (JV) to scale up Yoma Micro Power (S) Pte Ltd (YMP) and to explore developing around 200 megawatts of additional renewable energy projects within Myanmar, which will include participating in large utility-scale renewable projects.
As part of this transaction, Yoma Strategic and AC Energy have signed a binding term sheet for the new JV to invest at least US$30 million (S$41.2 million) into YMP. YMP builds micro power plants and mini grids that provide electricity to off-grid rural communities and telecommunications towers in Myanmar. It is rolling out 250 micro power plants by the end of 2019 and is expected to scale up to more than 2,000 sites by 2023.
Yoma Strategic owns a 35 percent stake in YMP, while the International Finance Corporation (IFC) and Norway’s private equity firm Norfund each hold 30 per cent. The remaining 5 per cent is held by YMP’s managing director Alakesh Chetia. After the investment and restructuring, which is planned for 2020, the JV is expected to hold at least 50 percent of YMP.
Source: Inquirer Plus