Debt, guarantees and mezzanine
InfraCo Asia sold its shares in Pakistan’s two 50MW Metro and Gul Ahmed wind power projects to the private sector, allowing the public funds it invested during development to be redeployed. The sale marked InfraCo Asia’s first complete exit from a utility-scale renewable energy project and demonstrated its ability to catalyse private sector infrastructure investment in its target countries.
InfraCo Asia Development saw two financial closes: the 36.7MW Kabeli A hydropower in Nepal; and a 1.2 hectare greenhouse hydroponics facility in Junga, north India, which will improve the yield and quality of vegetables for sale and export.
InfraCo Asia Development signed joint investment and development agreements (JIDAs) for a total of 16 projects in 2017, including a series of firsts. Its first commitments to water treatment and solar projects in Vietnam, are expected to reach financial close in 2018. In addition, a first JIDA to provide power to remote islands in Indonesia was signed.
Recognising its important role in de-risking project development in low-income areas of Asia, the company was awarded Smart Seed Investor status by industry publication Thomson Reuters Project Finance International.
In the coming years InfraCo Asia will seek to play a greater supporting role in the renewable, water and waste management sectors across the south and south-east Asia regions. With 16 new projects with Joint Development Agreements signed in 2017, InfraCo Asia will focus its efforts on bringing these projects into commercial operation, thereby scaling the impact of PIDG’s unique model of early-stage infrastructure development.
In these efforts InfraCo Asia will foster greater cooperation with other PIDG companies, including InfraCo Africa and GuarantCo, with whom it is now co-located in Singapore.