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GIC consortium cements earlier geothermal energy investment with tie-up

A CONSORTIUM of investors including an affiliate of GIC has tied up with the parent company of the geothermal energy producer it earlier invested into.

The consortium, known as Philippines Renewable Energy Holdings Corp (PREHC), had in August launched a voluntary offer to acquire up to 31.7 per cent of Energy Development Corporation (EDC) for about US$1.3 billion.

EDC is the largest vertically integrated geothermal company in the world. It is also the largest pure-play renewable energy company in the Philippines with 1,471 megawatt (MW) of clean and renewable power assets.

Its majority shareholder is independent power producer First Gen, which produces power in the Philipines using natural gas, geothermal energy from steam, hydro-electric, wind and solar energy. Its portfolio of assets currently has a capacity of 3,489 MW.

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The partnership with First Gen will bring together First Gen's significant experience in the power, utilities and energy sectors in the Philippines with PREHC's global infrastructure expertise, to support the long-term growth of EDC, said GIC in a press release.

First Gen will continue to hold a majority stake in EDC, and maintain day-to-day control of the firm.

GIC chief investment officer Ang Eng Seng said the firm believes EDC's unique portfolio of renewable energy assets will continue to generate stable and sustainable returns. "This investment in EDC marks our first infrastructure commitment to the Philippines and we look forward to growing the company with our partners in this vibrant energy market," he added.