Singapore-based private equity firm Affirma Capital is investing about $35 million to acquire an Indonesian renewable energy platform operating utility-scale mini hydro and solar projects.
The company, which will be renamed as Bright Nusantara Energy (BNE), currently operates 30 megawatts in hydro and solar projects in West Sumatra, and Gorontalo and East Lombok, respectively.
There are another 22 MW of projects in near-term expansion, as well as 200MW in the development pipeline, which is expected to include storage generation assets.
The BNE buyout deal is the first investment from the KINETIK Affirma Capital Climate Transition Fund I, the $200 million-vehicle dedicated to decarbonisation projects in Indonesia.
In an earlier interview with DealStreetAsia, the fund’s manager, Affirma Capital managing director Winston Mandrawa, said there are also co-investors who will be part of the transaction.
The fund, which made its first close in December, is anchored by Private Infrastructure Development Group (PIDG), on behalf of the Australian government, and Standard Chartered Bank.
It targets mid-market control and significant minority investments across four core sectors: renewable energy; circular economy; waste and water services; transportation and logistics; and climate-enabling infrastructure.
Affirma Capital is also anticipating that more development finance institutions will invest in the fund, which is targeted to close next year, Mandrawa said.
Separately, the firm is also deploying from its Ascenta VI vehicle, which has a target of $520 million. The firm closed its fifth Korea fund, Ascenta V, at $473 million in October 2021. That was the PE firm’s first fundraising following its spin-off from Standard Chartered in August 2019.
