Arcapita BankArcapita Bank

ArcapitaArcapita

The joint venture partners have signed a definitive purchase agreement to acquire Honiton Energy Holdings plc, a high growth Chinese wind energy generation company, which will build the portfolio. Honiton was established in 2005 to develop and operate wind power generation facilities within China, and to date, has 50 MW of installed capacity, and a further 100 MW in development. In addition, the company has worked closely with the regional and state authorities in China, and has secured agreements to develop wind farms on 5 separate areas in China, representing a total of 2,244 square kilometres, on which it plans to develop its total capacity to reach 1,650 MW by 2012. Total installed wind energy capacity in China at the end of 2007 was 6,000 MW.

ArcapitaArcapita's partner in this transaction is the Tanti group, an India conglomerate which together with the Tanti family owns 66% of Suzlon Energy, one of the world's leading suppliers of wind turbines. This partnership brings capital, as well as technical expertise and together, ArcapitaArcapita and Colossus intend to invest at least US$ 2 billion into Honiton by 2012 for further wind development projects.

Atif A. Abdulmalik, ArcapitaArcapita's Chief Executive Officer, commented "We have previously built expertise in this sector, which we are very pleased to be extending through this partnership with the Tanti group. We believe this is another high quality investment opportunity in Asia, where we have now done 7 transactions, 6 of which have been completed within the last 12 months. The total transaction value of our Asian portfolio is more than US$5 billion."

ArcapitaArcapita sourced and executed the transaction out of its Singapore offices. Commenting on the transaction, Asim Zafar, head of ArcapitaArcapita's asset based business, said "There is universal agreement that China's demand for energy will continue rising strongly from its current levels of 2,500 terrawatt hours annually. With increasing energy demand, rising fossil fuel prices and growing need for clean and renewable energy, wind energy has developed further than the existing alternatives in its potential for scale and efficiency. Honiton has an excellent asset base, as well as a management team with good relationships in China at a regional and state level, which already has a track record of achievement."

As well as being ArcapitaArcapita's first investment in China, it is also ArcapitaArcapita's first asset-based investment in Asia. ArcapitaArcapita previously developed and then successfully sold a 391 MW portfolio of windfarms located in the United Kingdom.

-Ends-

About Arcapita
Headquartered in Bahrain with offices in Atlanta, London and Singapore, ArcapitaArcapita's four principal lines of business are corporate investment, real estate investment, asset-based investment and venture capital. To date, the Bank has completed 71 transactions with a total value of over US$ 26 billion and has an equity capital base of US$ 1.1 billion. ArcapitaArcapita's mission is to provide innovative and distinctive investment opportunities that generate superior risk adjusted returns while adhering to Islamic principles.

Full details of ArcapitaArcapita can be found at www.arcapita.com

About the Tanti Group of Companies:
Tanti group, directly and indirectly owns 66% of Suzlon Energy, one of the world's leading suppliers of wind turbines, with a market capitalization of $8 billion.

FOR FURTHER INFORMATION PLEASE CONTACT:
John Hobday, Financial Dynamics
Mob: +971504648706
Tim Doyne, Arcapita BankArcapita Bank B.S.C.(c)
Tel: +973 17 218 333
Mob: +973 39 929 009

© Press Release 2008

 

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