GIC, Macquarie mull USD-2bn divestment of EDC stake - report

Singapore's sovereign wealth fund GIC and Australia's Macquarie Group Ltd (ASX:MQG) are considering offloading their stakes in Philippine geothermal power producer Energy Development Corp in a deal with a potential value of USD 2 billion (EUR 1.85bn), Reuters reports.

Philippines Renewable Energy Holdings Corp (PREHC), which brings together funds managed by Macquarie Infrastructure and Real Assets and GIC's affiliate Arran Investment Pte Ltd, invested in EDC back in 2017. The partners bought 31.7% of the Philippine firm’s stock, paying about USD 1.3 billion.

GIC and Macquarie are now holding discussions with advisors regarding the potential divestment, sources familiar with the matter have told Reuters. The talks are in a preliminary phase and a decision has still not been made, they have added.

EDC is the largest renewable power supplier in its home country and one of Asia’s biggest geothermal energy producers. The company owns a fleet of 1,480 MW, which represents about 18% of the Philippines’ total installed renewable power. The geothermal plants in EDC’s portfolio are 1,185 MW in total, while the remaining capacity comes from wind, solar and hydropower.

(USD 1.0 = EUR 0.927)

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