New Wave, Malaysia firm eye $50-million renewable energy investment in Philippines

Private equity investment firm New Wave Strategic Holdings Inc. and Malaysian government-backed investment fund Emissary Capital Partners Sdn Bhd are eyeing to invest $50 million into the Philippines’ renewable energy market.

In a joint news release, the companies said the planned investment can help generate as much as 1,000 megawatts (MW) of bankable capacity in the country.

The investment proposal was presented to President Ferdinand Marcos Jr. during his three-day state visit in Malaysia last week.

New Wave and Emissary Capital are seeking to fund companies in the renewable energy sector, electric vehicle industry, and clean energy and smart grid enablers.

The companies’ immediate focus includes solar and wind farms in Northern Luzon.

“It is important that the Philippines develops a more mature eco-system with capital providers across various stages of the investment cycle. With Emissary’s entry into the Philippines, we are providing more founders and entrepreneurs access to growth capital as well as a regional network that can help them expand across SEA,” said New Wave director Enrique Gonzalez.

“Our value proposition is more than capital. We help businesses scale within the Philippines and can open up regional Southeast Asia access,” Gonzalez added.

New Wave and Emissary Capital said it is most challenging for companies to raise capital for renewable energy projects due to the perceived risks.

With this, the companies said that equipping developers with an additional war chest with value-added involvement in pre-development work will translate to attractive returns for the funds.

Both parties estimated that the establishment of a 1,000-MW bankable concession alone can generate an additional foreign direct investment of over $1.5 billion into the country to complete the construction and operation of targeted sites.

New Wave and Emissary Capital are also supporting the government’s target of increasing the share of renewable energy in the country’s total energy mix to 35% by 2030 and 50% by 2040 under the Philippine Energy Development Plan.

New Wave is a subsidiary of investment holding firm IP E-Game Ventures Inc., while Emissary Capital is backed by the Malaysian governments’ Penjana Kapital. — BM, GMA Integrated News