Singapore’s sovereign wealth fund, GIC, agreed to buy a US$2.05 billion ($2.72 billion) minority stake in a Duke Energy Corp. unit, allowing the utility to forgo a planned equity raise as power companies nationwide prioritize renewable-energy development.
Selling a 19.9% stake in its Indiana unit will help Duke pay for its increased US$58 billion to US$60 billion capital plan without having to raise $1 billion of common equity, according to a statement Thursday. North Carolina-based Duke will remain majority owner and sole operator of the unit.
The company has set goals of cutting its carbon emissions in half by 2030 and becoming net-zero by 2050. The GIC investment will help Duke “to effectively finance our robust investment plan in a clean energy future and continue delivering sustainable value to our investors,” Chief Executive Officer Lynn Good said in a statement.
