UOB and ORIX invest in Vietnam's leading private hydropower company

Bitexco Power owns and operates 18 hydropower plants in Vietnam with a gross power capacity of around one gigawatt (GW). The existing capacity can generate about 3,500 gigawatt-hours (GWh) of renewable energy annually, which is enough to provide electricity for about 2.7 million people in the country. Bitexco Power plans to use the new capital for business expansion and further consolidate its market-leading position in the renewable energy sector.

“The acquisition of shares by globally-renowned institutions - UOB and ORIX - will enable Bitexco Power to continue its rapid growth in the increasingly dynamic Vietnamese renewable energy space. It is also a reflection of their confidence in our ability to meet international corporate governance standards and our business plan execution, necessary to deliver long-term value to stakeholders and to contribute to the growth of the country,” said Ian Fox, CEO of Bitexco Power.

With the rapid growth of the Vietnamese economy over the past decade, power consumption has been rising dramatically. General Statistics Office of Vietnam estimated that electricity demand will continue to expand at an annual growth rate between 10 and 12 per cent, rising from 169.8 terrawatt-hours (TWh) in 2015 to 615.2 TWh by 2030.

“We believe Vietnam’s growth will continue to drive the demand for renewable energy. By investing in Bitexco Power, we hope to participate in the growth of the power sector and play a role in the country’s economic transformation,” said Seah Kian Wee, managing director of UOBVM.

Established in 1992, UOBVM has provided financing to more than 100 privately-held companies through direct equity investment, mainly in Southeast Asia and Greater China. UOBVM manages about $733.2 million in assets. The new investment will be allocated through from its ASEAN China Investment Fund III. This fund invests in growth-oriented companies in Southeast and East Asia, with an emphasis on the 10 countries of the ASEAN and China.

“Bitexco Power is our first investment in the Vietnamese power sector, which shows strong growth potential. We believe Bitexco Power is in the best position to benefit from the country’s on-going reform of the electricity market, underpinned by the rising demand for electricity. Following this investment, we are pleased to announce our further business expansion in the renewable energy sector across Asia,” said Yuichi Nishigori, corporate executive vice president of ORIX.

ORIX Corporation (TSE: 8591; NYSE: IX) provides products and services in lending, investment, life insurance, banking, asset management, automobile-related operations, real estate, and environment and energy-related businesses. It has offices in a total of 37 countries and regions across the world.

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