Private equity investor New Wave Strategic Holdings Inc. teamed up with Malaysian government-backed fund Emissary Capital Partners Sdn Bhd to invest $50 million in the Philippines’ renewable energy market that can generate up to 1,000 megawatts of capacity.
The proposal was presented to President Ferdinand R. Marcos Jr. during his three-day Malaysian state visit last week. The investment will partly fund companies in the RE sector including solar and wind farms in Northern Luzon.
“It is important that the Philippines develop 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 said.
Part of the funds will also go to the electric vehicle industry and clean energy and smart grid enablers, he said.
“Our value proposition is more than capital. We help businesses scale within the Philippines and can open up regional Southeast Asia access,” Gonzalez said.
New Wave and Emissary Capital identified the early stages of RE projects as the most challenging for companies to raise capital because of the perceived risks. They said equipping developers with an additional war chest with value-added involvement in pre-development work would translate into attractive returns for the funds.
Based on the parties’ estimates, the establishment of a 1,000-MW bankable concession could generate an additional foreign direct investment of over $1.5 billion to complete the construction and operation of targeted sites.
The parties said the investment would support the government’s target of increasing the share of renewable energy in the country’s total energy mix to 35 percent by 2030 and 50 percent by 2040 as outlined in the updated Philippine Energy Development Plan.
It will also complement President Marcos’ commitment during the Asia-Pacific CEO summit in November 2022 and the government’s pledges under the United Nations Climate Change Conference.
Emissary Capital partner Erman Akinci said the Philippines presents the most exciting renewable energy market in Southeast Asia for the next five to 10 years, especially after it opened to foreign investors following the amendment of the implementing rules and regulations of the Renewable Energy Act of 2008 in November 2022.
“Clean energy is both a local and regional commitment amongst ASEAN neighbors. We believe cross-border investment and trade will ultimately benefit the entire region and help ASEAN meet its collective goals. We hope our fund can contribute to this goal as well as generate healthy returns,” Akinci said.
New Wave and Emissary Capital also committed to leveraging their partnership with engineering, procurement and construction contractors to bring in more investors in the country.
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. It has two funds including a $50-million growth-stage tech fund that has invested in some of the leading tech companies in Southeast Asia.
