Sri Lanka’s LVL Energy Fund eyes Rs900mn from IPO

ECONOMYNEXT – Sri Lanka based LVL Energy Fund (LEF), a unit of publicly traded Lanka Ventures Plc which invests in power generation, is planning to raise 900 million rupees from an initial public offer this year, shareholders were told.

In June 2016, LEF had raised a 336 million rupees from a cash call at 8.00 rupees a share.

After the IPO the will have a billion rupees to invest in domestic and international power projects, Lanka Ventures Chairman Jonathan Alles, told shareholders.

LEF, in which Lanka Ventures has a 71 percent stake has paid 165 million rupees as dividends to the parent.

In June 2016, LEF had raised its stake in Nividu (Pvt) Ltd, which has mini-hydro projects in Assupiniella and Belihuloya totally 6.2 MegaWatts to 25 percent from 15 percent.

Belihuloya had plant factor of 46 percent and Assupiniella 48 percnet, which are above the industry average of 38 percent. Alles said both projects have now repaid their debts and will pay higher levels of dividends.

Directors have approved a 124 million rupee investment in a 2.5 MW plant in Uma Oya, in which LEF will have a 40 percent stake. The project with a head (height) of 46 meters is expected to generate 8.7GWh of energy.

Lanka Ventures group has also invested in power projects in Bangladesh and Nepal. (Colombo/Aug25/2016)

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