The Fiji National Provident Fund has bought 20% shares in Energy Fiji Limited worth $220m.

Speaking at the signing ceremony for the partial divestment of shares in EFL, Minister for Economy Aiyaz Sayed-Khaiyum says this marks a milestone achievement for both entities.

With forty four percent of EFL shares available for divestment, Sayed-Khaiyum says tough negotiations took place to ensure a successful outcome.

FNPF now owns 100 million shares from the 500 million shares issued in the market along with other conditions that were part of the negotiated terms.

“FNPF now of course will sit on the board of EFL and of course they will have one board member as long as they own 20% of the shares in EFL, EFL continues with its non-commercial obligations but kept to the value of $22m which is the figure that EFL spent in non-commercial obligation space in 2018”

Sayed-Khaiyum says this is a phenomenal step for the energy sector and will open up capital markets to allow more private sector investments.

FNPF Board chair Ajith Kodagoda says the buying of shares shows the enormous progress the Fund has made over the years.

“We trust that we will bring in the value that you expect us to bring in, we will grow EFL to become a true regional model for utility, the Minister has emphasized that there are opportunities outside Fiji”

Kodagoda says they will continue to look for long term investment opportunities to benefit its members.