The manager of Keppel Infrastructure Trust (KIT) has signed a non-binding memorandum of understanding (MOU) with Jinko Power (HK) Company.
The MOU will see both parties exploring solar farm and energy storage investment opportunities.
Under its terms, Jinko will identify up to 1,000MW of solar farm and energy storage projects from its high-quality pipeline of assets which KIT can potentially invest in.
Each of these assets is said to be in the key developed markets of Asia Pacific, Europe and the Middle East, all of which are jurisdictions that meet KIT’s key criteria.
KIT and Jinko will enter into separate investment agreements to acquire and hold the respective assets through special purpose vehicles (SPVs).
Jinko Power is a Shanghai-headquartered leading independent solar power producer with about 3 GW of installed capacity and 18,000 GWh of cumulative power generation in China.. Listed on the Shanghai Stock Exchange, the company has a market capitalisation of US$3.9 billion ($5.41 billion) as at Dec 31, 2021.
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Jopy Chiang, CEO of KIT’s manager says, “We are pleased to partner Jinko Power in the renewables sector as they are one of the leading solar energy developers with a strong track record globally.”
“In line with our target to increase our exposure to renewable energy by up to 25% of KIT’s equity-adjusted assets under management by 2030, we will continue to intensify and accelerate our efforts to find like-minded best-in-class partners such as Jinko Power, so that we can grow our presence and footprint in the renewable energy space,” he adds.
Furthermore, the MOU “forms a foundational pillar of KIT’s Energy Transition portfolio, and is a strategic focus of our ESG commitment to support communities by contributing to decarbonisation and providing greener energy sources”, Chiang continues.
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Charles Bai, president of the international power division at Jinko Power, commented, “Jinko Power is committed to the global cause of carbon neutrality through energy transition. The collaboration with Keppel Infrastructure Trust demonstrates the industry’s recognition of our capabilities and strong competitiveness, aligns our mutual aspirations towards the same mission, and leverages each other's strength in achieving a common goal.”
Shares in KIT closed at 56.5 cents on June 10.
