Actis launches power generation business

Actis, a leading global investor in sustainable infrastructure on Monday, announced the launch of Bridgin Power, a power generation business that will pursue gas-fired power projects and focus on delivering an equitable Energy Transition in Southeast Asia.

Bridgin Power is targeting a total portfolio capacity of 1.2 GWs across the region by 2028, states a press release published by the organisation.

Led by a management team based in Singapore with over 100 years of combined experience in the energy and power sector, Bridgin Power will apply a values-led approach, embedding sustainability in all decision-making. Target geographies include Vietnam, Indonesia, Thailand, Philippines, Malaysia, Bangladesh and Sri Lanka.

Bridgin recently closed its first investment by acquiring 49 per cent shareholding in a 220MW Combined Cycle Gas Turbine power plant in the Bhola region of Bangladesh.

Bridgin acquired this stake from India’s Shapoorji Pallonji group, a global, diversified institution with a sector focus on engineering and construction, infrastructure, energy, real estate, water and financial services.

The Bhola power plant has a 22-year PPA with Bangladesh Power Development Board and achieved commissioning in Jun 2021. The project was financed initially by the Asian Infrastructure Investment Bank (AIIB), Islamic Development Bank (IsDB) and IDCOL Bangladesh, who have now been replaced by a consortium comprising SMBC, ING, DBS, Bank of China, Mizuho and SocGen.

Clifford Chance and Shearman Sterling acted as international legal advisors, while F&A and DFDL acted as local law counsel. Standard Chartered, PMC Treasury, and Riverstone also acted as advisors for the transaction.

Sanjiv Aggarwal, Partner, Energy Infrastructure at Actis said: “We’re excited to be launching a business spanning Southeast Asia, a region which has increasing power demands and where we can leverage Actis’ proven strategy of aggregating energy assets into a scalable regional platform which enables a just and equitable Energy Transition.”

“We believe natural gas is an essential fuel for the medium term offering flexible low emission power as the region gradually transitions to more green energy sources. Bridgin Power’s investment in the Bhola power project in Bangladesh is a step in that direction,” he said.

“Investing from our $6bn Actis Energy 5 Fund, in partnership with Bridgin’s management team, we aim to deliver up to 1.2GW of power capacity by 2028,” he further said.

Dennis Foo, Group Chief Executive Officer, Bridgin Power, added, “We’re delighted to have closed our first investment in a country which has a strong need for gas power to meet its growing power demands and which provides a stable PPA framework for investors. The acquisition of Bhola asset sets us on our path to create an energy platform of scale, using natural gas as a bridge to a sustainable and low carbon future.”