On December 18, Dominican Republic investment firm GAM Capital signed an agreement with Akuo Energy Dominicana SRL to acquired an equity stake in local energy company Parques Eólicos del Caribe (Pecasa).
Refusing to disclose the cost of the transaction, GAM Capital revealed in a media release that it secured the stake through its publicly traded closed-end fund GAM Energía Fund.
According to the investment fund management company, “The transaction marks a milestone since, for the first time in the Dominican Republic, a publicly traded fund invests as a shareholder in the energy sector, one of the main engines of the country’s economy, thusly contributing to [improving] the composition of the country’s sustainable energy matrix. Among the most important investors of the GAM Energía Fund are professional and institutional clients.”
A 50-megawatt wind farm situated in El Copey, northwest of the Dominican Republic, Pecasa became operation in June this year with 25 wind turbines. The operation is one of the country’s largest renewable energy project that should reduce the emission of greenhouse gases.
Previously owned 100 per cent by Akuo Energy Dominicana, Pecasa will become a joint venture of Akuo Energy Dominicana, GAM Energía Fund, and Siemens Energy Partners — the last holding a 33 per cent stake.
“At Akuo Energy we are very proud of this contribution that further improves the composition of the country’s sustainable energy matrix. In GAM Capital, we have found a partner that allows all Dominicans who contribute to their pension funds to participate in this effort and both its environmental and economic benefits,” Salvatore Longo, Country Manager of Akuo Energy for the Dominican Republic.
At its inception, Pecasa received funding from a consortium of international institutions. Among them: the International Finance Corporation, a member of the World Bank; the Government of Canada, through its partnership in the IFC–Canada Climate Change Program; and Support from Proparco, part of the French Development Agency; FMO — the Dutch Entrepreneurial Development Bank; and the German Investment Corporation.