KUALA LUMPUR, May 10 – Tenaga Nasional Bhd (TNB) has entered into a conditional subscription agreement to subscribe new equity shares for US$300 million in GMR Energy Ltd (GEL) via its unit, Power and Energy International Ltd. This represented a 30 per cent equity interest in GEL for conditional subscription agreement to subscribe for new equity shares in GMR.
In a filing to Bursa Malaysia yesterday, TNB said the proposed subscription is in line with its ‘5-Year International Expansion Roadmap’ to secure new generation capacity internationally. It said at the time of TNB’s investment, GEL would comprise a portfolio of best-in-class power assets, with a total capacity of 4,630 MW.
In the meanwhile, TNB also said that India has a favorable economic outlook and stable political landscape, coupled with favorable demographics, a rapidly growing energy sector and cultural and strategic fit with Malaysia, creating an attractive investment opportunity.
It said India has a large and supply-constrained power market with demand spurred by the economic growth and we will be able to capture the long-term growth of the Indian electricity market. GEL is a part of GMR Infrastructure Limited, one of the largest diversified infrastructure conglomerates in India.