Swicorp division buys Pakistani renewable power stake

The energy-focussed private equity unit of Middle Eastern financial services firm Swicorp has made its second renewables investment in a month.

Swicorp Joussour portfolio company Creative Energy Resources Corporation has bought a strategic stake in a 586MW thermal and renewable power plant in Pakistan, according to a statement.

Terms were undisclosed in the acquisition from an affiliate of GE Energy Financial Services, a division of conglomerate General Electric.

The investment is the second renewable deal by the energy-focussed private equity unit, owned by financial services firm Swicorp, in a month. Two weeks ago it was part of a consortium contracted to build a polysilicon plant in Saudi Arabia for an undisclosed sum.

The Pakistani power plant uses combined cycle thermal power to generate electricity using gas. This gas is supplied under a long-term agreement with the Pakistan Government-owned Oil and Gas Development Corporation.

The plant's output is sold to Pakistan water authority WAPDA, to supply a national utility via a long-term contract. The plant is the lowest cost source of thermal power generation in Pakistan, the statement said. The company is looking to benefit from the increasing demand for power in Pakistan.

Swicorp company Creative Energy Resources Corporation either builds or acquires power generation, transmission and distribution facilities in the Middle East, North Africa, and South Asia.