Equis Energy snapped up by GIP in record $5bn renewables deal

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Equis Energy, a Singapore-based developer of solar, wind and hydropower projects globally, has today agreed to be sold for a record $5 billion to Global Infrastructure Partners (GIP), via a new investment fund, Global Infrastructure Partners III.

The fund also comprises China Investment Corp (CIC), Canada’s PSP Investments and a group of other co-investors. The fund will buy all of Equis Energy’s renewable energy projects and pipeline for $3.7 billion, with an additional $1.3 billion of liabilities also to be assumed by the fund.

The total amount – $5 billion – is the highest acquisition figure yet seen in the renewable energy sector and, according to GIP, will position the investment fund as “a dominant renewable energy developer in key OECD growth markets of Australia and Japan, as well as across India and Southeast Asia,” GIP said in a statement.

Equis Energy has overseen the development of some of the world’s largest solar projects. This year the firm has been heavily involved in Australia’s solar market, investing more than AUS$400 million in February to build 200 MW of PV, and in August securing approval to build a 1 GW solar farm, also in Australia.

These projects – and more like them – will now come under the ownership of GIP and its co-investors. Equis Energy has more than 115 long-term renewables projects in its pipeline, comprising more than 9 GW of clean energy capacity. Current installed capacity under its umbrella stands at 1.9 GW.

“Equis Energy is a unique success story in the APAC region as it has systematically executed its growth strategy since its found five years ago,” said GIP chairman Adebayo Ogunlesi. “In that period, Equis Energy has become one of the leading renewable energy platforms in the region.”

Equis’s sale had been on the cards since the summer, when it emerged that a number of trading companies, buyout firms and global pension funds were competing to acquire the firm. GIP and co-investors made their move at a time when many Asian governments are stepping into the renewables space, particularly solar.

The transaction has been officially signed and sanctioned, and will be completed in Q1 of next year.

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