Orix enters Philippine power market

Bags its biggest deal in Southeast Asia.

Japanese financial services group Orix Corporation has bought a 20% share in Global Business Power Corporation, the power generation arm of Philippine conglomerate, GT Capital Holdings, Inc., for US$165.8 million.

Global Business Power is the main electricity provider in the Philippines' Visayas region. It has nine power plants with a total capacity of 627 MW.

The deal is the biggest one in Southeast Asia for Orix, which is planning to expand its electricity generation business in the region.

Power demand is projected to rise sharply in the Philippines, the fastest growing economy in Asia, and some of the country's biggest conglomerates have unveiled plans to push into electricity generation over the next five years, with investments seen reaching US$9 billion.

The Philippines' total generating capacity is estimated at 15,300 MW this year and the country needs an additional 2,500 MW in the four years to 2017, according to the Department of Energy.