Monday, March 21, 2011

CIMB-StanChart JV CapAsia provides equity capital of USD20.5m for Pakistan wind parks

KUALA LUMPUR: A CIMB Group and Standard Bank Group joint venture ' CapAsia -- will provide US$20.5 million in equity capital to two wind parks in Pakistan.

CIMB Group said on Monday, March 21 the two wind parks of 50 MW are being developed in the Sindh province in southeast Pakistan under the sponsorship of the Fauji Foundation, Fauji Fertilizer Bin Qasim and the Tapal Group - all from Pakistan.

CONSTRUCTION [] of the two wind parks is expected to start in November 2011 and be completed in March 2013.

With a total investment size of around US$260 million, the projects will be among the first such parks realised since the Pakistan government enacted the framework for renewable energy investment in 2006.

CapAsia is a joint venture private equity fund manager specialising in mid-cap infrastructure investments in Southeast Asia and Central Asia.

CapAsia entered into the agreement via its Islamic Infrastructure Fund (IIF). The IIF, managed by CapAsia, is a US$262 million private equity infrastructure fund that is jointly sponsored by the Islamic Development Bank and the Asian Development Bank.

CapAsia chief executive officer Dr Johan Bastin said, "This is an important investment for IIF. Pakistan is in one of the fund's core target geographies and renewable energy is a priority investment sector for CapAsia.

Pakistan has good wind resources ' especially in the corridors at Gharo and Jhimpir in Sindh Province with wind speeds averaging in excess of 6.8 m/sec.

Since its inception in 2006, CapAsia's assets under management has grown to about US$500 million. It currently manages three main funds ' namely the South East Asian Strategic Assets Fund (SEASAF), Islamic Infrastructure Fund (IIF) and the Asia Infrastructure Fund (AIF).

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