LONDON — Armstrong Asset Management has forged a new partnership agreement with The Blue Circle for wind and solar project financing in the Mekong Region of Thailand, Vietnam and Cambodia. With Armstrong agreeing to commit up to US $40 million in equity to fund the construction of wind and solar projects, it will also take a minority equity stake in The Blue Circle – a vertically integrated renewable energy developer operating in the region.
Currently the developer has a pipeline of over 600 MW of renewable energy projects under evaluation or negotiation in the Mekong Region.
“Having an institutional investor like Armstrong as a shareholder and project equity partner, with their extensive operational experience in Southeast Asia and specialization in renewable energy, will certainly accelerate the growth of The Blue Circle portfolio and strengthen our financing ability” said Olivier Duguet, CEO.
The agreement between the two Singapore based companies means that The Blue Circle will also benefit from Seed Capital Assistance Facility (SCAF) funding , an initiative by UNEP, ADB and GEF designed to help project developers overcome some of the challenges of greenfield project development.
Armstrong closed its Clean Energy Fund when it reached $164 million last November. Prior to the latest deal, it had made two investments from the fund: a capital commitment of up to US $30 million to Annex Power for solar PV and biogas projects in Thailand, Indonesia and the Philippines, and an equity stake in Symbior Elements to develop a portfolio of solar generation in Central and Northeast Thailand.
The development follows a recent co-investment deal between Armstrong and Mandiri Investment Management to work together to invest in renewable energy projects in Indonesia, starting with small and micro hydropower developments.
Lead image: River sunrise Vietnam via Shutterstock