Malaysian pension fund Kumpulan Wang Persaraan (KWAP) has paid 219 million ringgit (US$50.24 million) for a minority stake in offshore wind vessel operator Cyan Renewables as a co-investor in a deal led by Singapore private equity firm Seraya Partners.
The move aligns with the fund’s pledge to achieve 20 billion ringgit of investments in transition assets by 2030.
KWAP announced the deal in a statement on October 26 without disclosing the percentage shareholding in Cyan, a Singapore-based operator of offshore wind vessels that, according to the fund, is already generating “significant revenues” from Malaysia.
The statement says KWAP and Cyan plan to invest up to 1 billion ringgit together into the firm, including to establish its Southeast Asia headquarters in Malaysia and to develop fleet management and chartering teams. The teams will be based in the Malaysian capital of Kuala Lumpur and Miri, a town in East Malaysia known for its oil fields.
According to Hazman Hilmi Sallahuddin, chief investment officer of KWAP, the investment in Cyan aligns with the pension fund’s commitment to support its core values of sustainability, prosperity and innovation.
“This initiative is also part of KWAP’s commitment to catalyse growth in key economic sectors including infrastructure, transport, and renewable energy, amongst others,” he says.
James Chern, managing partner and chief investment officer of Seraya Partners, says Cyan is now the largest offshore wind and environmental protection vessel operator globally and that the private equity firm is “excited for this opportunity to partner with KWAP and to support its strategic objectives for uplifting the Malaysian economy”.
KWAP manages the retirement savings of civil servants, with 184.5 billion ringgit of assets as of end-June.
