Renewable energy solutions provider Scatec has refinanced the USD 37 million of non-recourse project debt for the 39 MW wind power plant Dam Nai in Vietnam.
With this refinancing, Scatec has achieved improved project return through a reduced interest margin and a covenant relief which allows for an immediate cash distribution of USD 6 million.
The Dam Nai wind farm is 100% owned by Scatec and was part of the acquisition of SN Power in early 2021. It is located in the Ninh Thuan province, approximately 350 kilometres north of Ho Chi Minh City, in the southern part of the Southeast Asian country.
Vietnam is an important market for Scatec, and the refinancing demonstrates how project returns can be enhanced when renewable assets and financial markets in countries where Scatec operate becomes more mature. The refinancing is being facilitated by Vietcombank, one of the largest commercial banks in Vietnam.
“We are very pleased with the improved financing terms and project returns resulting from the refinancing. This transaction is the result of our continuous efforts to improve value creation for our operating portfolio through financial optimisation,” says CFO Mikkel Tørud.