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GIC to buy US$2.05 bil minority stake in Duke Energy Corp unit

Bloomberg
Bloomberg2/1/2021 11:00 AM GMT+08  • 4 min read
GIC to buy US$2.05 bil minority stake in Duke Energy Corp unit
Duke might even try to sell GIC more of the Indiana unit in the future so it could develop renewable energy in North Carolina.
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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.

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