Manhattan Resources: In talks with European investment fund to finance renewable projects

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Manhattan Resources said Friday it was in talks with an unnamed European investment fund to obtain an up to US$24 million loan facility to finance planned renewable energy projects in Vietnam and other countries. 

In addition, the company said it was in talks with several banks to finance the project pipeline, as well as looking at internal resources, bank borrowings, fund-raising exercises, the proceeds of disposing of two land parcels in East Kalimantan and/or shareholders’ loans. 

In October, Manhattan Resources had entered a deal to acquire Singapore-based renewable energy development platform company Athena Energy Holdings for S$4.83 million; Athena specialises in commercial and industrial rooftop solar projects and utility scale solar, wind and energy storage projects in the renewable energy sector.

Currently, Manhattan Resources’ businesses include operating a coal-fired power plant in East Kalimantan in Indonesia, but the company is now looking to expand into renewable power, focusing on Asia, mainly Vietnam, Indonesia, the Philippines and Bangladesh, as well as Australia.

On Friday, Manhattan Resources said Athena’s wholly owned indirect subsidiary Vietrof Renewal Energy Vietnam, or Vietrof RE, had entered two deals: A long-term power purchase agreement to sell Huafu (Vietnam) Industrial the net electrical output of a rooftop photovoltaic power system, and a separate deal for PowerChina Sichuan Engineering Corp. to build the rooftop power system. 

“The company aims to be amongst the first movers to pursue the green energy business in Asia and Australia and to become a leading renewable energy company in Asia and Australia by providing solutions to power customers and industries to reduce their carbon emission,” Manhattan Resources said in a filing to SGX.

The company cited “positive prospects” in the renewable energy industry, noting Indonesia’s government has said it wanted to accelerate and promote its adoption.

“There will be favourable contracting terms for sale of renewable power to be issued by the Indonesian government which will provide incentives and securities to promote developments of renewable energy,” the company said.

Manhattan Resources said it would seek shareholder approval in an extraordinary general meeting (EGM) for its diversification into the new business.

Read Manhattan Resources’ filing to SGX.