GIC and Macquarie are interested in selling a $2 billion stake in EDC Philippines, according to sources

Two sources familiar with the matter have confirmed that Macquarie and GIC are considering selling their roughly 30% stake in Energy Development Corp. (EDC) of the Philippines, a deal which could bring in $2 billion.

Sources who declined to identify themselves because the discussions are private said that they were in preliminary discussions with advisors, and that no decisions had been taken.

EDC is the Philippines largest renewable energy company with a capacity installed of 1,480.19 Megawatts. The majority of this is geothermal. According to its website, it accounts for about one fifth of the total installed renewable power capacity in the Philippines.

GIC, the Singapore sovereign wealth fund and Macquarie Infrastructure and Real Assets both invested in EDC during 2017. In 2017, GIC, a Singapore sovereign wealth fund, and Macquarie Infrastructure and Real Assets invested in EDC.

First Gen Corp., the company owned by Philippines tycoon Federico Lopez, holds most of EDC. First Gen 2023's annual report shows that it has 65% of EDC's voting rights, while GIC's and Macquarie’s joint venture Philippines Renewable Energy Holdings Corp holds 34.9%.

GIC and Macquarie refused to comment. EDC has not responded to a comment request.

As countries strive to achieve climate goals while coping with the growth in electricity demand, renewable energy attracts increasing investment.

The International Energy Agency estimates that the electricity demand in Southeast Asia will grow by 4% annually in the next few years. Clean energy sources, such as solar and wind, along with modern bioenergy, geothermal energy, and other forms of energy, are expected to account for more than one-third of this growth. (Reporting and editing by Edwina G. Gibbs; Reporting by Yantoultra NGi)

(source: Reuters)