Leader Energy secures over US$100 million investment from CAF II to accelerate renewable energy growth in Southeast Asia

PENANG / HONG KONG, 9 October 2024 – Leader Energy Group Berhad (“Leader Energy”) (formerly known as Leader Energy Holding Berhad), a wholly owned subsidiary of HNG Capital Sdn Bhd, has secured an investment of more than US$100 million from China-ASEAN Investment Cooperation Fund II (“CAF II”), which is sub-advised by ESR Group Limited (“ESR”; SEHK Stock Code: 1821), APAC’s leading New Economy real asset manager.

The investment was made to back the expansion of Leader Energy’s renewable power generation and transmission portfolio in Southeast Asia.

Leader Energy ventured into renewable energy in 2016 and has since become one of the largest and fastest-growing regional players in Southeast Asia’s renewable energy power sector. Leader Energy presently has a portfolio of operating assets of a total hydro and solar power installed capacity of over 550-megawatt and 235 kilometres of transmission line assets, across Southeast Asia, as well as robust pipeline projects, with a target to double its installed capacity of operating assets in the next five years.

Through the partnership with CAF II, Leader Energy intends to accelerate its robust pipeline across the region and reinforce its position as one of the largest pure-play renewable energy company in Malaysia.

CAF II, with an initial capital commitment of US$1 billion, is the largest Southeast Asia-focused infrastructure private equity fund ever raised. This is CAF II’s second investment project, following its inaugural investment into Pertamina’s geothermal energy assets in Indonesia.

Dato’ Sean H’ng, Executive Deputy Chairman and co-group CEO of Leader Energy, said, “We are grateful for CAF II’s vote of confidence and support as we seek to accelerate the growth of our renewable energy portfolio and contribute to the region’s energy transition to net zero. Their investment principles align with our commitment to a sustainable future, accelerating our efforts to contribute and to promote clean energy.”

Jeffrey Shen, ESR Group Co-founder and Co-CEO, said, “With 30 years of experience in the power sector, Leader Energy’s track record in this sector is unrivalled, having achieved a CAGR of 35% in terms of installed capacity of operating assets since its foray into renewable energy in 2016. By embarking on this partnership with Leader Energy, we are advancing sustainable energy solutions while creating significant value for our stakeholders. Importantly, our shared commitment to growth and innovation will drive positive and impactful change in the communities where we operate for a sustainable future.”

ESR offers investors exposure to high-quality, sustainable infrastructure assets that deliver attractive risk-adjusted returns, while incorporating a strong focus on environmental, social and governance considerations. ESR’s infrastructure and renewables platform is one of ESR’s three growth focus areas, alongside logistics real estate and data centres.