Coro Energy PLC (LON:CORO) has inked a deal to acquire a portfolio of planned rooftop solar projects in Vietnam.
The portfolio, comprising 150 megawatts of generating capacity, is being bought from Vinh Phuc Energy (VPE) and the deal begins with a low-cost entry, starting with a 5 MW pilot project.
Coro will hold an 85% interest in a newly formed joint venture company called Coro Renewables Vietnam, with the company funding the venture initially with US$500,000.
“This transaction enables Coro to secure access to a significant portfolio in Vietnam which should see cash generative projects with short development cycles, significant news flow and high returns,” said chief executive Mark Hood. “I am delighted that we are able to achieve this with minimal upfront development capital.”
Hood added: "Vietnam remains one of the highest growth markets at the forefront of the regional transition to clean energy.
“We are delighted to continue rapidly building our clean energy portfolio alongside the progress we are making on our utility scale projects in the Philippines.”
He highlighted the deal shows Coro’s commitment to build a portfolio with projects at different stages of progression which gives the company a number of differently phased cash generative opportunities in the coming months and years.