Nexif Energy, a Southeast Asian independent power producer, announced today that it has taken controlling interest in the 30 megawatt (MW) Coc San hydro power project in Vietnam through the acquisition of a majority ownership of Viet Hydro Pte Ltd. This transaction marks the first project under the Nexif Energy platform formed in August 2015.
Surender Singh, a Founder and Co-Chief Executive Officer of Nexif Energy, said:
“Hydroelectric power is one of the most economical sources of electrical energy in Vietnam. With its strong renewable hydro resources, liberalising power regulatory regime and stable political environment, Vietnam is a key investment destination and presents an attractive growth opportunity for Nexif Energy."
Coc San is a run-of-the-river 30 MW hydro power project located in the Dum River Valley, a tributary of the Hong (Red) River, about 300 kilometres northwest of Hanoi in Lao Cai province. The project is in an advanced stage of construction and expected to commence electricity generation by March 2016.
The Coc San project has an estimated investment amount of US$50 million and it reached financial close in December 2014. Saigon Hanoi Commercial Joint Stock Bank (SHB) financed the project.
The project was developed by InfraCo Asia through its manager Nexif Management Pte. Ltd..
Matthew Bartley, a Founder and Co-Chief Executive Officer of Nexif Energy, said:
“Nexif Energy is pleased to invest in the Coc San project and become a part of Vietnam’s rapidly growing economy. We are committed to our goal of becoming a leading regional independent power generation company and are currently reviewing other investment opportunities in the country as well as the Southeast Asia region that would build on this initial investment.”
Nexif Energy, formed with the backing of leading global energy-focused private equity firm Denham Capital, acquired the shares of two existing shareholders and has subscribed to additional equity shares, resulting in it holding a majority stake in Viet Hydro. InfraCo Asia Development Pte Ltd, a commercially managed infrastructure development company headquartered in Singapore, is also a shareholder of Viet Hydro and has retained its stake.
Scott Mackin, Managing Partner and Co-President at Denham Capital, said:
“Denham is delighted with this successful first investment by Surender, Matthew and their team. This transaction fits the profile of projects that we envisioned for Nexif Energy at the outset of our partnership, as it leverages the team’s experience in the region and aligns with our strategy of providing low-cost power generation to an emerging economy. We are confident that this marks the first of many projects for Nexif Energy and look forward to seeing them play a role in Southeast Asia’s unfolding growth story.”
Nexif Energy was formed in August 2015 by Nexif, a Singapore-based independent power management company, and Denham Capital, a leading global energy-focused private equity firm, to develop, finance, construct and opportunistically acquire conventional and renewable power generation assets across Southeast Asia and Australia.