BlackRock said to eye Asian power, water portfolio

07 May 2019 - 12:00 am UTC

US fund manager BlackRock is bidding for I Squared Capital’s 1.4 GW power and water portfolio spread across China, South Korea, Taiwan and Vietnam, according to market sources.

Indicative bids were filed on April 18, but bankers are yet to see a shortlist, according to SparkSpread, a sister publication to Inframation. Credit Suisse is I Squared’s financial advisor.

I Squared has been exploring the sale since last year, as first reported by SparkSpread on Sept. 4. While a teaser was released in early February. it noted that Credit Suisse was still contemplating the sale and made no mention of a bid timetable.

The investment bank has been mandated to sell 100% of Asia Cube Holdings, according to the document.

Asia Cube Holdings (ACH) is comprised of Asia Cube Energy, a 1.4 GW APAC renewable energy platform with 23 assets spread across four countries; and Asia Cube Water, a portfolio of 13 waste water treatment assets, with a total capacity of 312,500 tons per day, and two hazardous waste treatment assets spread across five Chinese provinces.

Asia Cube Energy’s 1.4GW portfolio includes projects that are operational, under construction and shovel ready, of which 1GW is expected to be operational by the end of 2020.

ACH run rate revenue is around USD 220m; while the company’s EBITDA is around USD 155m, with Asia Cube Energy contributing 87% of that EBITDA.

ACH revenue is forecast to grow by 98% to USD 435m by 2023, while EBITDA is projected to expand by 106% to USD 320m.

Asia Cube Energy’s portfolio has 20 operational projects.

The portfolio is comprised of 33% ground mounted solar; 21% solar floating on water; 21% offshore wind; and 21% onshore wind, with the remainder made up of cogeneration and waste-to-energy assets.

Asia Cube Water is made up of 10 operating assets and a further six pipeline assets spread across five Chinese provinces.

A BlackRock spokeswoman did not respond to an email seeking comment.

 

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