KUALA LUMPUR (Oct 9): Leader Energy Group Bhd, which operates power plants, said on Wednesday it has secured an investment of over US$100 million (RM429 million) from a China-backed private equity fund.

The investment by China-Asean Investment Cooperation Fund II, or CAF II, will support the expansion of Leader Energy’s renewable power generation and transmission portfolio in Southeast Asia, the company said in a statement. Leader Energy said it intends to expand its pipeline across the region.

“We are grateful for CAF II’s vote of confidence and support as we seek to accelerate the growth of our renewable energy portfolio and contribute to the region’s energy transition to net zero,” said Datuk Sean H’ng, executive deputy chairman and co-chief executive officer of Leader Energy.

Leader Energy ventured into renewable energy in 2016 and the company now has a portfolio of operating assets of a total hydro and solar power installed capacity of over 550 megawatts and 235km of transmission line assets across Southeast Asia.

The company also has a target to double its installed capacity of operating assets in the next five years. Leader Energy, formerly known as Leader Energy Holding Bhd, had previously filed for an initial public offering on the Main Market of Bursa Malaysia before aborting the plan.

CAF II, with an initial capital commitment of US$1 billion, is a quasi-sovereign fund sponsored by the Export-Import Bank of China, among other institutional investors. The fund is sub-advised by ESR Group Ltd, a Hong Kong listed real asset manager.

“By embarking on this partnership with Leader Energy, we are advancing sustainable energy solutions,” said ESR Group co-CEO Jeffrey Shen, noting that Leader Energy has achieved an average annual growth of 35% in terms of installed capacity since its foray into renewable energy.

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