PINAI Fund to Finance Wind Power Project in Northern Philippines

News Release | 15 July 2013

MANILA, PHILIPPINES - The Philippine Investment Alliance for Infrastructure (PINAI), a fund which is partly financed by the Asian Development Bank (ADB), is investing up to $85 million for a wind farm project in the northern part of the country.

The 81-megawatt project - PINAI's first investment ever - is a joint venture with AC Energy Holdings Inc., a wholly-owned subsidiary of Ayala Corporation, and UPC Renewables Partners (UPC) through UPC Philippines Wind Holdco BV.

"We are delighted that PINAI has selected a green power project as its first investment. It is aligned with our objective of making the country's growth more inclusive and sustainable," said Janette Hall, Senior Investment Specialist at ADB's Private Sector Operations Department.

PINAI will own 32% of the project, while AC Energy and UPC will own 64% and 4% respectively.

The project will have two phases, with the first phase generating at least 54 megawatts, to be connected to the grid by June 2014.

PINAI is a $625 million private equity fund focused exclusively on Philippine infrastructure projects. It was launched in July 2012 to capitalize on the various public-private partnership opportunities in the Philippines. PINAI should spur more private equity funds that will catalyze additional long-term capital into the country, and further development of domestic capital markets.

According to the Philippine Development Plan, around 12% of the country's $120 billion investment requirements need to come from the private sector.

PINAI is managed by Macquarie Infrastructure and Real Assets. It is jointly financed by ADB, Philippines' state-owned pension fund Government Service Insurance System, Dutch pension fund asset manager APG, and the Macquarie Group.