Saigon Asset Management to launch $300m Indochina energy fund
Saigon Asset Management plans to raise $300 million for an energy fund targeting thermal and hydro power projects in Vietnam, Cambodia and Laos. The company believes the energy sectors in these countries are open to foreign investment and plans to participate on a project basis or through direct investments into power companies.
SAM noted that the consistently high GDP growth - fueled by industrial expansion and rising per capital consumption - in the Indochina region means significant investment is required in the power sector. Energy demand is increasing at 2-2.5x GDP growth.
The Vietnamese government recently announced a new national power development plan, which calls for investment of $48.8 billion in order to triple electricity capacity to 75,000 MW by 2020. The bulk of this new capacity is anticipated to come from thermal and hydro power plants. Low electricity tariffs have in the past held back investment in the sector, leading to chronic energy shortages, rolling blackouts, and a reliance on electricity imports from China.
Cambodia, which is heavily dependent on diesel-generated electricity and therefore has some of the highest energy prices in the ASEAN region, has approved 15 new power projects, with five already under construction by independent power producers (IPPs).
Power generation and distribution is the largest single component of Laos' GDP. The country has 73 power projects in varying stages of approval and power export supply agreements with Thailand, Vietnam, and Cambodia. All of these new projects are being undertaken by IPPs.
More on Southeast Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.