Malaysia's reNIKOLA eyes $440 million spend to expand RE footprint across Southeast Asia

Malaysia's reNIKOLA Holdings is seeking to raise up to $440 million over the next three years to expand its renewable energy footprint across Southeast Asia, the company's managing director told Reuters.

"Our predominant focus is Malaysia but we are also exploring projects in ASEAN and South Asia," Boumhidi Adel told the news agency. ReNIKOLA is looking to grow its renewable projects portfolio to 1 gigawatt-peak (GWp) from the existing 178 megawatt peak (MWp) right now, Adel said.

He added that besides solar, the company was also evaluating other forms of renewable energy such as biogas and green hydrogen.

Adel also said the company will issue Islamic bonds or souks in August, adding they would be the first sukuk to bear climate-bond certification. Such certification is provided to bonds which contribute towards assets and projects in the low-emissions space. Adel said Kuala Lumpur-headquartered reNIKOLA's sukuk would raise around $86 million for the company.

Additional funds are expected to arrive via a reverse takeover of Pimpinan Ehsan, a Malaysian shell company. reNIKOLA is looking to close the acquisition by the first quarter of the next calendar year, Adel said, adding, "That listing exercise is expected to raise additional equity to the group, which will be used for development of more renewable projects."