‘Stocks in renewable energy sector attract investor interest’


Text and pix by Steve A. Morrell

Rajiva Bandaranayake, CEO, Colombo Stock Exchange, (CSE), said yesterday referring to the Initial Public Offering, (IPO) of LVL Energy Fund Limited, that LVL was the second company this year to enter the CSE.

"The year commenced on this bright note which augurs well for the investment climate morphed into economic progress and investor confidence. The envisaged projects included hydro, solar, and wind power generation," he said.

The oversubscribed position of the LVL IPO is an indication that there are more IPOs expected to surface over the next few weeks. Lanka Ventures' reach to capital markets as a new listing on the Bourse was fillip to strengthen projections that gradual foreign confidence in Colombo is an ongoing essential feature for financial progress.

CEO LVL Fund Limited, Sumith Arangala, said the oversubscribed position of the power sector clearly indicates the increasing demand for renewable energy.

Investment strategy generated 750 applications which meant 50 percent of the IPO could pursue power generation in Bangladesh and eventually Nepal. The Nepal project would essentially be for hydro power generation.

He also said although hydro power generation in Sri Lankan context was considered at saturation, future possibilities should be in excess of 10 MW projects.

At the Q & A session that followed, he said the company was also considering power projects in East Africa, Uganda, Kenya, and Rwanda. Planned in that context, would be concentration for hydrogenation.

‘Was it feasible to do business in, for instance, Bangladesh ?’ his positive reply was that in such countries, it was literally a one-stop-shop. ‘ You state your project, have your feasibility documents ready, they inspect such documents, and approve. They don't send us from one desk to another. That is a substantial advantage, in those countries.’

He preferred a ‘no comment’ position relevant to approvals for similar approvals in Sri Lanka’s officialdom.

The 1.2 billion IPO realization was for 60 percent renewable energy concentration on wind power.

When asked whether the Kilinochchi wind belt, the northern and southern wind blocks also would be explored, he said,"Balapitiya area is being considered for wind power expansion. However, solar power, involves vast land which is currently not being considered. Solar power generation is mainly for homes".

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