Citigroup-Backed Sindicatum Carbon May Hold 2012 Public Offering

Sindicatum Carbon Capital Ltd., a developer of clean-energy projects that’s partly owned by Citigroup Inc. and Cargill Inc., may complete a $100 million share sale by June and hold an initial public offering in 2012.

The Singapore-based company needs the funds after investing about $240 million in ventures including those that tap methane gas from waste to run turbines, Michael Boardman, the chief financial officer, said in an interview. Sindicatum may go public in 18 months, he said, without giving details.

“We would like to have a balanced capital raising from investors in U.S., Europe and Asia,” said Boardman, 47, who spent 18 years at Nomura International as an investment banker, and joined Sindicatum this month. The company sold shares for $80 million in two tranches in 2007 and 2008, and separately raised $240 million via a carbon fund.

Global investment in low-carbon energy surged to a record $243 billion last year, eclipsing the $186.5 billion spent in 2009 and is more than double the level in 2005, Bloomberg New Energy Finance said on Jan. 11.

Sindicatum hired Atlantic-Pacific Capital Inc. in June for the private equity raising, and plans to meet investors in Asia this year, said Chief Executive Officer Assaad Razzouk, 47.

“The market conditions are difficult compared to 2008, harder to raise money,” Razzouk, a co-founder of the company, said in Singapore. “It’s going to boil down to valuation and how people view this sector.”

The University of Texas endowment fund invested $50 million in a fund, the International Sindicatum Climate Change Partnership, and $15 million to take a stake, Razzouk said in an e-mail today.

Asset financing for utility-scale projects such as wind farms, solar parks and biofuel plants expanded 19 percent last year to $127.8 billion, New Energy Finance said. Enel Green Power SpA’s initial share sale led $17.4 billion of investments from the public.

Sindicatum, which employs 170 people including engineers, technicians and climate-change specialists, specializes in helping mining companies use methane from coal extraction and in showing factories how to burn industrial gases rather than release them into the atmosphere where they would trap heat.

In return, the company earns United Nations certified emission-reduction credits, or CERs, for investing in the projects that eliminate emissions from greenhouse gases such as methane. UN credits for December delivery on the Intercontinental Exchange rose 0.6 percent to 11.05 euros yesterday.

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