REG - Coro Energy PLC - Vietnam Update

Coro EnergyAnnouncement

25/09/2024 07:00

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RNS Number : 4909F  Coro Energy PLC  25 September 2024

25 September 2024

 

Coro Energy Plc

("Coro" or the "Company" and together with its subsidiaries the "Group")

 

Vietnam Update

 

Coro Energy PLC, the South East Asian energy company with a natural gas and
clean energy portfolio, announces further positive developments at its C&I
rooftop solar business in Vietnam as it continues to deliver on its strategy
in-country.

 

As previously announced, the Company currently has 10 existing producing sites
(cc.0.4MW) and a further 30 sites (c.1MW) currently under construction with
Mobile World Group ("MWG") in Vietnam. The Group has today signed a further
binding 14 year Power Purchase Agreement ("PPA") to deliver power at the next
50 sites with an aggregate capacity of c.1.9MW (the "New Sites"). This brings
the total MWG contracted capacity to 3.3MW across 90 sites in Vietnam.

 

The terms of the PPA are consistent with those announced on 8 March 2024 and
27 August 2024 whereby the PPA term is extendable in certain circumstances and
includes a variable price with a floor of circa US$11.2 cents / kilowatt hour.
Construction work at the 50 New Sites is expected to begin imminently and to
conclude approximately 28 days after construction at the relevant site has
commenced.

 

To facilitate the construction of the New Sites, the Company has also entered
into an EPC contract and, as with the 30 sites currently under construction,
has agreed upon payment arrangements with the EPC provider which will in
effect provide deferred payment terms for 85% of the EPC costs, subject to a
cap on deferral of New Site expenses of US$1M. These arrangements defer
payment for two months and the deferred payments are subject to a 12% annual
coupon and a 2% fee. Once the New Sites are constructed the Company will owe a
total of US$1.5M (excluding VAT) in deferred payments to the EPC Contractor.
The Company's deferred payment obligations are initially unsecured, however
the EPC provider has the right to request asset security from the Company at a
later stage, if it considers it necessary to do so.

 

For further information please contact:

 

 Coro Energy plc                                          Via Vigo Consulting Ltd

 Cavendish Capital Markets Limited (Nominated Adviser)    Tel: 44 (0)20 7220 0500

 Adrian Hadden

 Ben Jeynes

 Hybridan LLP (Nominated Broker)                            Tel: 44 (0)20 3764 2341 (tel:(0)20%C2%A03764%202341)

 Claire Louise Noyce

 Vigo Consulting (IR/PR Advisor)                          Tel: 44 (0)20 7390 0230

 Patrick d'Ancona

 Finlay Thomson

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation 596/2014 which is part of UK law by virtue of the
European Union (Withdrawal) Act 2018, as amended and supplemented from time to
time. Upon the publication of this announcement, this inside information is
now considered to be in the public domain.

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