ADB-backed infra fund to invest $85m in Philippines wind farm
The Philippine Investment Alliance for Infrastructure (PINAI) fund, a vehicle partly financed by the Asian Development Bank (ADB) and managed by Macquarie Infrastructure Management Asia, is investing up to $85 million in the country's first ever wind farm project.
The 81-megawatt project is a joint venture with AC Energy Holdings, a subsidiary of Ayala Corporation, and UPC Renewables Partners (UPC) under the banner UPC Philippines Wind Holdco.
PINAI will own 32% of the project, while AC Energy and UPC will own 64% and 4% respectively. The project will have two phases, with the first phase generating at least 54 megawatts, to be connected to grid by June 2014.
"We are delighted that PINAI has selected a green power project as its first investment," said Janette Hall, senior investment specialist at ADB's private sector operations department, in a statement. "It is aligned with our objective of making the country's growth more inclusive and sustainable."
The PINAI fund had its first and final close in July 2012 reaching its PHP26 billion ($625 million) target. The fund focuses exclusively on Philippine infrastructure projects, capitalizing on the various public-private partnership opportunities in the Philippines.
According to the Philippine Development Plan, around 12% of the country's $120 billion investment requirements need to come from the private sector.
PINAI is jointly financed by ADB and Philippines' state-owned pension fund Government Service Insurance System, Dutch pension fund asset manager APG, and the Macquarie Group.
Relatively untapped by private equity to date, the Philippines seem to have garnered more attention from investors of late. Earlier this month, Swedish asset managers Brummer & Partners backed PHP5 billion Philippines-dedicated private equity vehicle, the Navegar Fund, while local GP Angeon Advisors announced last year it would be raising its maiden fund with a target of $100 million.
The Philippines, which saw the highest GDP growth in the Southeast Asia last year at 6.6%, is one of several Southeast Asian nations that have become increasingly appealing to GPs looking to tap regional growth outside of Indonesia, where there is increasing competition for deals.
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