I Squared seeks more bids for Asia Cube assets

03 September 2019 - 10:20 am UTC

Bidders for I Squared Capital's 1.4GW Asia Cube power, and water portfolio - spread across China, South Korea, Taiwan and Vietnam - last week submitted proposals in a second round, according to sources familiar with the matter.

 

There will be a bidding round in a few weeks because Asia Cube has added 70-80MW of Taiwanese solar capacity to the portfolio, the sources told SparkSpread, a sister publication to Inframation.

 

Blackrock, Brookfield Asset Management and Macquarie Capital are still in the bidding mix, according to a source.

 

Financial advisor Credit Suisse received one bid for the whole portfolio, and others for the non-Chinese assets, he added. The investment bank is considering selling the Chinese and non-Chinese businesses separately.

 

As many as seven bidders - including APG Asset Management and Japan's Marubeni - submitted proposals in the first round .

 

I Squared has been exploring the sale since last year. A teaser was released in February this year, which described how I Squared was considering the sale of 100% of Asia Cube Holdings.

 

Asia portfolio


Asia Cube Holdings (ACH) is comprised of Asia Cube Energy, a 1.4GW Asia-Pacific renewable energy platform with 23 assets spread across four countries; and Asia Cube Water, a portfolio of 13 waste water treatment assets with a total capacity of 312,500 tons per day, and two hazardous waste treatment assets spread across five Chinese provinces.

 

Asia Cube Energy’s 1.4GW portfolio includes projects that are operational, under construction and shovel ready, of which 1GW is expected to be operational by the end of 2020.

 

ACH's run rate revenue is around USD 220m. Its EBITDA is about USD 155m, with Asia Cube Energy contributing 87%. Revenue is forecast to grow by 98% to USD 435m by 2023, while EBITDA is projected to expand 106% to USD 320m.

 

Asia Cube Energy’s portfolio has 20 operational projects, comprised of 33% ground mounted solar; 21% solar floating on water; 21% offshore wind; and 21% onshore wind. The rest is made up of cogeneration and waste-to-energy assets.

 

Asia Cube Water has 10 operating assets and six pipeline assets spread across five Chinese provinces.

 

In July, Asia Cube Energy was awarded a feed-in tariff (FiT) for the Changhua 1 and 2 floating solar project in Taiwan, which is the largest renewables asset in the company's portfolio. It is likely to be commissioned in mid-2020. 

 

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