Paris, Dec. 18, 2019 – STOA is pleased to announce its investment of a US $20 million equity ticket in JCM Power Corporation (JCM Power), a Canadian-based renewable energy independent power producer developing and operating renewable energy projects in Africa, South Asia and Latin America.
STOA’s investment forms part of a US $116 million equity offering, to which four development finance institutions also participated, namely FMO (the Dutch development bank), Swedfund (the Swedish development bank), IFU (the Danish development bank) and FinDev Canada (the newly founded Canadian development bank). The offering also included participation from prominent Canadian family offices and foundations.
JCM Power had previously secured commitments from FMO (US $25 million in 2017) and Swedfund (US $15 million in 2018) and is announcing the closing of US $76 million in new commitments with STOA investing US $20 million.
JCM Power aims to establish long-term partnerships with local communities, governments and financial institutions to build and operate clean energy projects in markets such as Africa where economies are growing rapidly and electricity is currently scarce, but sun and wind are abundant.
Commenting on the transaction, Charles-Henri Malecot, CEO of STOA, underlined the positive longterm impacts of this transaction: “This investment is in support of our strategy to build long-term partnerships in strategic sectors in order to answer the need for essential infrastructure in Africa and in the other emerging markets, fostering sustainable and resilient economies.”
Mr. Malecot added: “This transaction represents an important milestone in supporting emerging countries’ endeavours to achieve their climate targets and will significantly enhance their ability to adequately react to energy transition challenges. We are delighted by the possibilities that working together, with JCM Power and its other shareholders, will bring.”
“JCM Power is thrilled to complete its first large institutional equity offering with the leading strategic investors in our industry. The capital raised will allow us to implement the first six high impact renewable energy projects and also serve to accelerate our growth from a development company into a globally diversified independent power producer focused in high growth markets” said Christian Wray, CEO of JCM Power.
This equity investment in JCM Power, which is the sixth investment of STOA and its third in the renewable energy sector after only two years of existence as an emerging markets’ infrastructure investor, will help bridge the energy gap and encourage the progressive consolidation of the energy sector in STOA’s key target geographies.
