Denham Capital announced it has entered into an agreement to sell its interests in the GNPower coal-fired Mariveles project to Ayala Corporation for $155 million. The Mariveles power project is a 600MW station currently undergoing commissioning in the Philippines’ Bataan province. Completion of the transaction is subject to lenders’ consent and other customary closing conditions.
Denham’s initial investment in the Mariveles project was alongside Power Partners, the developer of the project, in June 2007. Financed by a consortium of Chinese and Filipino banks, the Mariveles project received Asian Project Finance Magazine’s “Deal of the Year” award in 2010. Mariveles is the only large-scale plant that will come online in the Philippines in 2013, and will be a low-cost source of power to help fill the nation’s anticipated power supply needs.
“The GNPower Mariveles project is an example of the global nature of the work being done by our power and renewables group,” said Scott Mackin, Denham Capital’s Co-President and head of its power and renewables team. “The deal affirms our thesis of patiently supporting strong local development partners in countries with significant need for new generation capacity, stable regulatory frameworks and a deep pool of potential buyers.”
“Partners such as Denham Capital are crucial to the continued growth of the Philippines’ economy, as they provide needed capital to help keep the cost of power down so that local industries can remain competitive, as well as creating numerous jobs,” added Dr. Dan Chalmers, chief executive officer of GNPower. “Beyond simply providing capital, however, Denham greatly contributed to bringing this plant on line through their hands-on assistance with our development and financing efforts over the years. They have been an ideal partner.”