KUALA LUMPUR (July 9): A Singapore-based green investment fund has raised its stake in Jentayu Sustainables Bhd (KL:JSB) as it pushes ahead with its RM2.8 billion hydroelectric project in Sabah.

In a Bursa Malaysia filing on Thursday, Jentayu disclosed that PK Green Fund had increased its stake from 49.1 million shares (9.02%) to 71.1 million shares (13.06%) in the company, following an additional 22 million shares acquired on July 7.

Jentayu said PK Green Fund had informed the company that its investment is strategic and long-term in nature.

"It intends to be a constructive and supportive shareholder, engaging with the board and management on matters relating to the company's strategy, corporate governance and sustainability," read the filing.

The additional shares were worth RM4.4 million based on the 20 sen consideration stated in a separate filing that Nurhaida Abu Sahid, wife of Jentayu managing director Datuk Beroz Nikmal Mirdin, had disposed of the same number of shares via an off-market transaction on July 7.

Following the disposal, Beroz Nikmal ceased to be a substantial shareholder, with his direct stake reduced to 20.89 million shares or 3.84%.

The investment comes as Jentayu works towards financial close for Project Oriole, a 162MW run-of-river hydroelectric project in Sipitang, Sabah. The project is held through Jentayu’s 70%-owned subsidiary Oriole Hydro Padas Sdn Bhd.

Project Oriole has secured a 40-year power purchase agreement with Sabah Electricity Sdn Bhd, providing long-term offtake for the electricity to be generated.

Once operational, the project is expected to supply about 16% of Sabah’s peak electricity demand, according to Jentayu.

The project is aligned with the Sabah Energy Roadmap and Master Plan 2040, under which the state targets renewable energy to make up more than half of its generation mix by 2035.

Jentayu, formerly known as Ipmuda Bhd, is listed on the Main Market of Bursa Malaysia and has been shifting its focus towards renewable energy, mainly through run-of-river hydropower.

PK Green Fund is a Singapore-domiciled investment fund focused on environmental and social impact sectors, including renewable energy in emerging markets.