GIC and Macquarie Group Consider Selling Stake in Philippines' Energy Development Corp

According to a Reuters report, Singapore’s GIC and Australia’s Macquarie Group are exploring the sale of their approximately 30% stakes in Energy Development Corp (EDC), the Philippines' most significant renewable energy firm.

According to the Reuters report, this deal could generate around $2 billion.

The two investment firms are engaged in preliminary discussions with advisors, but no decisions have been finalized as the talks remain private.

According to the company's website, EDC boasts an installed capacity of about 1,480.19 megawatts, primarily derived from geothermal energy. This contributes roughly 20% of the Philippines' total renewable energy capacity.

GIC, a sovereign wealth fund based in Singapore, and Macquarie Infrastructure and Real Assets initially invested in EDC in 2017 and plan to acquire up to 31.7% of the company for approximately $1.3 billion.

First Gen Corp, led by Philippine tycoon Federico Lopez, holds the majority stake in EDC. According to First Gen's 2023 annual report, it maintains 65% of the voting rights in EDC, while the joint venture of GIC and Macquarie, known as Philippines Renewable Energy Holdings Corp, holds 34.9% of the voting rights.

As countries increasingly focus on meeting climate goals, renewable energy continues to attract significant investments.

The International Energy Agency projects that electricity demand in Southeast Asia will grow at an annual rate of 4% in the coming years.

Clean energy sources, including wind, solar, modern bioenergy, and geothermal power, are expected to fulfil more than a third of the region's energy demand growth by 2035.