ABC World Asia (ABC World), the Singapore-based Asia-focused private equity impact fund, is set to make its first exit as part of a transaction between shareholders of portfolio company Sunseap Group and global renewables energy producer EDP Renewables (EDPR).
“The rapid scaling despite the challenges posed by the COVID19 pandemic is a testament to the dedication and execution abilities of the Sunseap management team. The investment from EDPR further affirms our strong conviction of Sunseap’s potential when we first partnered with the company in its impact journey across Asia,” ABC World Chief Investment Officer Tan Shao Ming said in a statement on Monday.
He also said climate continues to be a key investment theme for the fund.
“With Asia’s energy needs projected to grow rapidly in the next few decades, the region will be a decisive factor in the global fight against climate change. We look forward to identifying and supporting more companies that will play significant roles in addressing climate change challenges for Asia,” he added.
ABC World invested in Sunseap in its Series D round in 2020 to fund the expansion of its renewable energy assets in Singapore and the rest of Asia. Since then, Sunseap has increased its clean energy capacity by 115 MegaWatt-peak throughout Asia. This new capacity is expected to help avoid approximately 1.3 million metric tons of net carbon emissions over its lifetime.
It was reported last week that EDPR had bought 87.4 percent stake in Sunseap for €600 million ($694.05 million). The strategic investment by EDPR values Sunseap at S$1.1 billion ($810 million). Upon completion, EDPR will become the largest shareholder in Sunseap.
Incorporated in 2011, Sunseap Group is a clean energy solutions provider in Singapore with over 2,000 MegaWatt-peak solar energy projects contracted across Asia and on more than 3,000 buildings in Singapore. These include public housing estates, as well as commercial and industrial buildings. Sunseap also operates in various territories in the Asia Pacific, including Vietnam, Cambodia, China, Taiwan, Japan, Thailand, and Malaysia.
Meanwhile, EDPR is a global player in the renewables energy sector and the world’s fourth-largest wind energy producer. With on-shore, off-shore, and solar energy assets, EDPR has a presence in 17 markets across Asia, Europe, and America.
Backed by investors such as Temasek Trust, Temasek, Pavilion Capital, Mapletree Investments, Seatown Holdings, Sembcorp Industries, and Singapore Power with an inaugural S$405 million ($300.07 million) fund, ABC World invests in companies that drive positive change by addressing the world’s most pressing challenges such as climate change, resource scarcity, and deepening inequality. Its investment themes include financial and digital inclusion, better health and education, climate and water solutions, sustainable food and agriculture, and smart and liveable cities.
The fund believes that investing with an impact lens demonstrates the positive power of private capital and can help to foster more innovative and resilient companies that deliver societal and environmental benefits. It is a disciplined investor with a rigorous and evidence-based impact assessment approach that aims to generate positive and measurable social or environmental outcomes, alongside a compelling risk-adjusted return for its investors.
Portugal’s EDP Renewables acquires 87.4% stake in Singapore’s Sunseap for $697M