- Coro Energy said it had signed binding heads of terms to acquire rights over a portfolio of solar projects in Vietnam from Vinh Phuc Electrical Mechanical Installation, trading as Vinh Phuc Energy.

Under the agreement, the two companies will 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 Vietnam with Coro funding the JV for an 85% equity interest whilst VPE will transfer its existing 150MW project portfolio for a 15% carried interest,' the company said.

As a first step, Coro will fund US$500,000 to de-risk a 5MW pilot project which it expects to achieve 'ready to build' status during 2021.

Coro will then have the right to fund the construction of the 5MW pilot project, estimated at US$3.5M, with a view to securing near term cash flows, estimated at around US$0.6m per annum unlevered, net to Coro.

Coro would also have the option to fund the entire 150MW portfolio held by the JV, likely through project finance.

The heads of terms includes an exclusivity period ending on 1 October 2021.

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