Maybank set a milestone when it signed an agreement with Maybank MEACP Pte Ltd of Singapore on 15 November 2011 to launch its US$500 million (RM1.568 billion) private equity fund, the first private equity fund backed by a South East Asian bank dedicated to clean and renewable energy in Asia.
The fund will prioritise power generation infrastructure projects using renewable sources and will have a first close of US$87.5million, of which Maybank will contribute US$50 million.
The agreement was signed by Tengku Dato’ Zafrul Tengku Aziz, CEO of Maybank Investment Bank (Maybank IB) on behalf of Maybank and Mr Mumtaz Khan, CEO of Maybank MEACP Pte Ltd of Singapore.
The Fund will be co-managed by Mayban Ventures Sdn Bhd and its joint venture partner, Mr Mumtaz Khan, CEO of Maybank MEACP Pte. Ltd. It immediately makes Mayban Ventures one of the leading players in the Clean Energy private equity space.
The Maybank MEACP Clean Energy Master Fund will focus on clean energy projects in sectors such as wind, solar, geothermal, small hydro, biomass, bio fuels and energy efficiency in the region. Through this fund, Maybank is able to tap into a sector with immense potential and attractive returns, whilst being a responsible corporate citizen in doing our part for the environment.
The Fund will comprise two parallel investment vehicles – US$350 million Master fund supported by Maybank, Asian Development Bank and International Finance Corporation and US$150 million Co-financing vehicle supported by the Washington D.C based Overseas Private Investment Corporation of the US.
Clean energy is becoming even more popular as a source of power to meet Asia’s growing needs. The long-term fundamentals are compelling as rising fossil fuel prices, combined with high volatility in recent years, have sparked a greater worldwide interest in clean energy. The clean energy industry is growing exponentially and is expected to continue to grow over the next decade.
Asian governments are prioritising policy guidelines and incentives for achieving clean energy targets. Broad ranges of clean energy sub sectors provide in-built diversification. Clean energy in Asia is a rapidly growing infrastructure asset class with multi-faceted opportunities. Carbon credits provide additional hard currency revenues and further enhance project returns.
Malaysia has created some of the most successful companies in the region and globally such as AirAsia, YTL and Petronas. The Fund will be an active partner and we seek to create similar companies in Malaysia to provide the energy of the future for Malaysia and the region.