BANPU Acquires a 37.6MW Wind Farm in Vietnam Worth ฿2Bn, Expecting to Take Place in 4Q20

Banpu Public Company Limited (BANPU) announced that on July 31, 2020, BRE Singapore Pte. Ltd, a subsidiary company of Banpu NEXT Co., Ltd, in which BANPU and Banpu Power Public Company Limited (BPP) each held 50% shareholding, entered into a Sale and Purchase Agreement (SPA) for the acquisition of the 37.6 MW El Wind Mui Dinh operating onshore wind farm located in Ninh Thuận Province, Vietnam. The purchase consideration payable is approximately $66 million (approximately ฿2,065 billion) which will be equally fnd by internal cash flow of BANPU and BPP. 

 

This transaction remains subject to certain adjustment, conditions precedents outlined in the SPA and customary approvals with completion expected to take place in the fourth quarter of 2020.

 

The El Wind Mui Dinh wind facility has been fully operational since April 23, 2019 and is entitled to the Feed-in-Tariff (FIT) of US cents 8.5/kWh. The facility supplies electricity through the national grid system under a Power Purchase Agreement with Vietnam Electricity (EVN) for a period of 20 years. Inclusive of El Wind Mui Dinh, total committed renewable energy capacity under Banpu NEXT will reach 814 MW.

 

In addition, BANPU stated that the company will continue seeking investment opportunities to achieve the growth target under Energy generation business of 6,100 MW in 2025 by focusing on markets with attractive growth and supportive government policy.