Macquarie Capital Ltd on Wednesday said that it remains commitment to Taiwan’s transformation toward renewable energy beyond 2025 and would continue to support government projects, including exploration for liquefied natural gas, upgrades of the energy grid and geothermal power.
Asked about concerns that Macquarie’s decision to sell part of its stake in the Formosa I wind project would leave other investors and lenders with all the risk, Macquarie Taiwan country head Ryan Chua (蔡毅霆) said the sale is a crucial part of its business.
“Our role in Taiwan’s nascent offshore wind industry is that of a developer and a lead arranger of leadership capital,” Chua told reporters at a news conference in Taipei.
Leadership capital is what gets projects that are unfamiliar territory — as offshore wind is — going, while conventional investors are unable to take on the high level of perceived risk, Chua said.
Macquarie has its own team of experts capable of navigating the many challenges of a renewable project, from engineering, procurement and construction, to gaining government approvals, he said.
“Effectively, we de-risk a project and create an asset as projects mature, which suits investors’ needs,” Chua said, adding that the company can leverage its experience from projects in Europe.
With Formosa I to join the national energy grid before the end of this year, Macquarie in December last year announced that it would sell part of its 50 percent stake in the offshore wind project to Japan’s Jera Co, a utilities company.
Formosa I’s income stream has been locked in with the government’s feed-in tariff and would be enough to cover interest costs and generate returns, Chua said, adding that Jera’s purchase is a testament to the project’s viability.
The sale is how Macquarie is recycling capital to fund new projects, he said.
The company is also looking into Taiwan’s independent power producer industry, he said.
Macquarie held a forum to share its experience in infrastructure and renewable energy to an audience of about 200 representatives of institutional investors and government departments, including the Energy Bureau.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a