Global investor ThomasLloyd Energy Impact Trust Plc has entered Vietnam’s renewables market via a partnership agreement with Solar Electric Vietnam with an initial $30 million investment.
The new partnership’s first transaction, subject to regulatory approval and completion of other conditions, will be its acquisition of private firm Viet Solar System Company Limited (VSS), which holds rooftop solar assets of 6.12 megawatts.
ThomasLloyd Energy announced its foray into Vietnam on Wednesday.
VSS, headquartered in Chau Duc district, Ba Ria-Vung Tau province, began operations in July 2020. It already has solar arrays installed on the rooftops of some factories near HCMC.
ThomasLloyd Energy, listed on the London Stock Exchange as TLEI, said $4.6 million would be used to acquire VSS, and the remaining $25.4 million is expected to be deployed on additional opportunities in Vietnam, most of which have been identified.
The investment deal envisages the purchase of renewable energy assets already owned, controlled, or identified by Hanoi-based Solar Electric Vietnam or originated by investment manager ThomasLloyd Global Asset Management (Americas) LLC. It includes a right of first refusal for TLEI in relation to new shovel-ready projects or operational assets developed or originated by the Vietnamese partner.
Near-term pipeline
Solar Electric Vietnam has also identified additional off-market solar assets with a total capacity of 137 MWp, which includes 11 MWp of assets under negotiation for exclusivity to TLEI, with due diligence being advanced, the renewable energy investment trust said.
“Despite challenging market circumstances, we are delighted to have formally entered Vietnam, a market that we have been observing for a number of years,” said Michael Sieg, group chief executive of TLEI’s investment manager.
“This latest investment allows us to deliver our 'Triple Return' of providing attractive investment returns for investors by investing where capital makes a meaningful, measurable and significant impact and tackles climate change at source. We look forward to accelerating our pipeline momentum,” he said.
In June, TLEI agreed to buy out Indian renewables platform SolarArise India Projects for $38.5 million. With the completion of that transaction, expected shortly, and the new Vietnamese purchase, TLEI would have deployed over 86% of its net initial public offering (IPO) proceeds, it said.
TLEI’s portfolio now comprises three solar power projects in the Philippines, seven in India (including a 200 MW construction-ready asset) and two in Vietnam, with a combined capacity of 520 MW.