Coro Energy Public Limited Company has acquired an 85 per cent stake in a portfolio of commercial and industrial (C&I) rooftop solar projects in Vietnam with a combined capacity of 150 MW. The company has signed a binding heads of terms with the owner of the portfolio, Vinh Phuc Energy JSC (VPE), to jointly develop the solar portfolio. The definitive joint venture agreement (JVA) is expected to be signed by the end of August 2021. The exclusivity period under the Heads of Terms ends on October 1, 2021.
Under the planned deal, VPE will transfer its 150-MW project portfolio to Coro Renewables Vietnam, the future JV in exchange for a 15 per cent carried interest. It will also provide engineering, procurement and construction (EPC) services at market benchmarked levels. Coro will fund the JV for its 85 per cent equity stake.
The first project on which the partners intend to work together has a capacity of 5 MW and is expected to reach a ready-to-build status by the end of 2021. Total investment needed for this project is estimated to be around USD 3.5 million. Coro will have the option to provide funding for the whole portfolio held by the JV.