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Sri Lanka’s Lanka Energy Fund plans Rs1.2bn IPO

ECONOMYNEXT – Lanka Energy Fund, a unit of Colombo-based HNB group which has thermal and renewable energy projects in Sri Lanka, Bangladesh and Nepal is planning a 1.2 billion rupee initial public offering.

The firm which is 71 percent owned by Lanka Venture Fund (LVF), wants to sell 120 million shares at10 rupees each, Chairman Jonathan Alles told shareholders. LVT is already a publicly traded company.

The firm will use 60 percent of the proceeds for new investments and 40 percent to retire debt. The sell down will bring a 300 million ‘deemed disposal profit’ to the parent company’s books.

The firm has 727 million in hydro power projects which are operating or are being built with a total capacity of 20.5 MegaWatts.

In wind power it has invested 667 million rupees in 15MW of projects.

The firm has invested 1,040 million in thermal power projects in Bangladesh totalling 104.4MW.

Alles said the firm had 2,434 million rupees in energy with 30 percent in hydro, 27 percent in wind and 43 percent in thermal.

The return on investment in hydro was 14 percent, while wind was 27 percent and thermal 22 percent.

The firm’s 3.0 million dollar investment in a 10MW hydro plant in expected to be commissioned in the middle of 2019.

Alles said the firm is eyeing another 114MW thermal plant in Bangladesh, a 20MW of wind in Sri Lanka and more solar power plants being tendered by the Ceylon Electricity Board. (Colombo/Sept03/2017)





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