07:00 Mon 12 Jul 2021
Coro Energy PLC - Proposed Acquisition of Vietnamese Solar Portfolio
This announcement contains inside information
Coro Energy Plc
("Coro" or the "Company")
Proposed Acquisition of Vietnamese Solar Portfolio
Coro Energy Plc, the South East Asian energy company focused on leading the regional transition to a low carbon economy, is pleased to announce it has signed binding Heads of Terms to acquire rights over a portfolio of 150MW rooftop solar projects in
Highlights
· Low cost entry for Coro into the fast growing Vietnamese energy sector as an independent power producer
· Coro to acquire 85% equity interest in a newly formed joint venture to be named Coro Renewables Vietnam (the "JV") in exchange for initial funding by Coro of
· VPE, a highly regarded local EPC contractor, to transfer their existing 150MW project portfolio into the JV and provide management services in exchange for a 15% carried interest in the JV
· Coro to fund the 5MW pilot project through construction once de-risked with the option to fund the broader portfolio of over 150MW solar projects
· All rooftop projects benefit from attractive economics and are underpinned by long term "take or pay" Power Purchase Agreements ("PPAs") with creditworthy industrial customers and US Dollar denominated pricing
Throughout the past two decades,
Coro and VPE have entered into binding Heads of Terms to jointly develop VPE's existing 150MW portfolio of commercial and industrial rooftop solar PV installations. Any consequent definitive joint venture agreement will create a joint venture in
As a first step Coro will fund
VPE are a leading Vietnamese Solar asset owner and Engineering, Procurement and Construction contractor, with an experienced team of over 90 operations staff and extensive experience deploying solar PV systems in
The JV's portfolio will initially consist of 150MW of commercial and industrial rooftop solar PV projects with attractive economics that are underpinned by long term "take or pay" PPAs with creditworthy industrial customers and US Dollar denominated pricing.
Following signature of the binding Heads of Terms, Coro and VPE shall negotiate and agree a definitive joint venture agreement for the JV based on the principles of the Heads of Terms. Coro expects signature of the joint venture agreement by the end of
Further announcements will be made, as appropriate.
"
This transaction enables Coro to secure access to a significant portfolio in
This transaction also demonstrates our commitment to building a development portfolio with projects at different stages of progression, creating a number of differently phased cash generative opportunities in the coming months and years."
For further information please contact:
Coro Energy plc
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Via Vigo Communications Ltd
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Cenkos Securities plc (Nominated Adviser)
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Tel: 44 (0)20 7397 8900 |
Vigo Communications Ltd (IR/PR Advisor) Patrick d'Ancona
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Tel: 44 (0)20 7390 0230 |
Tennyson Securities (Broker)
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Tel: 44 (0)20 7186 9030 |
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