Khazanah Nasional Berhad (“Khazanah”) through its wholly owned subsidiary Payar Investments Ltd. has signed a joint venture (“JV”) agreement with Camco International Limited (“Camco”) to set up a South-East Asian (“SEA”) emission reduction company that will focus on investments in emission-to-energy projects, carbon credit development and advisory services.

Camco is a leading global developer of emission reduction and clean energy projects listed on the Alternative Investment Market (“AIM”) of the London Stock Exchange with a 20-year track record in carbon project delivery with presence in the US, UK, Europe, China, Africa, Russia and SEA. Combining Camco’s expertise and operations together with Khazanah’s regional investment footprint, knowledge and relationships will enable Khazanah to develop institutional knowledge and establish a business platform that can quickly realise and implement Clean Development Mechanism (“CDM”) projects in Malaysia and throughout SEA. The JV hopes to contribute towards Malaysia’s conditional voluntary targets to reduce emission intensity of real Malaysian GDP by 2020.

The new JV will have an initial capital of up to USD30 million (RM92.7 million) to invest in the emission-to-energy market in Southeast Asia, utilizing Khazanah’s regional footprint and presence with Camco’s know-how and its existing carbon development projects in SEA.

As part of the transaction, Khazanah will invest £1.86 million (RM9.1 million) into Camco through the subscription of 5% (post issuance) ordinary shares at a price of 20 pence per share. Application has been made for the 5% ordinary shares to be admitted to trading on AIM. Additionally Khazanah will acquire 19.6% (pre issuance) shares in Camco from the secondary market, which will give Khazanah a final shareholding in Camco of 23.6%.

Khazanah’s Managing Director, Tan Sri Dato’ Azman Hj Mokhtar said: “We are very pleased to form a JV with Camco, which will be at the forefront of shaping the emission reduction and carbon abatement sector in Malaysia as well as the region. The partnership will also serve as Khazanah’s vehicle to commercially develop the sustainable development sector as part of the New Economic Model and to address the critical need to increase awareness and advocacy of climate change issues in Malaysia. It is also envisaged to contribute significantly to the voluntary conditional commitment made in Copenhagen late last year to reduce as much as 40% carbon emission intensity by 2020.”

Scott McGregor, Chief Executive of Camco, said: “Khazanah is the optimal long term investor for Camco in the SEA region. The JV will leverage Khazanah’s unrivalled local expertise, which will open a whole new vista for our operations in the region. We look forward to creating a market-leading business together, with the people, know-how and funding to deliver.”

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