MUMBAI, May 21 Gulf Finance House announced the launch of Energy City India in response to growing electricity demand.
Energy City will be built over 600 acres in Navi Mumbai, and $395 million in private placement is being launched by GFH to raise the equity, underwritten by Kuwait Investment Company. It's expected to yield a return of at least 75 percent over three years.
Navi Mumbai, or New Bombay, is a planned city built on the outskirt of Mumbai, formerly Bombay.
This will be the second Energy City project; the first was announced in Qatar in March 2006. The projects build clusters of energy-related businesses that include living accommodations, shopping, entertainment, leisure and medical facilities. Nearly all of the plots at the Qatar location have been purchased, raising nearly $500 million.
"Energy City brings to Mumbai and to India a new concept -- that of being able to work and live in one holistic environment. No longer will employees have to spend their valuable personal time commuting to work," said Peter Panayiotou, deputy chief executive officer of GFH and chief investment officer. The business infrastructure of Energy City encompasses foreign and domestic oil and gas, including refiners, producers, shipping, trading and support.
"The $395 million Energy City India private placement offers regional investors with an opportunity to participate in the tremendous prospects being offered by the Indian economy, which is growing at a rate of over 9.2 percent per annum," said Esam Janahi, chief executive officer and board member of GFH. "India has tremendous energy needs which are growing by the day." Several more energy cities are planned for the Middle East.
Copyright 2007 by UPI
