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Scatec, a leader in renewable energy solutions, has refinanced USD 37 million of nonrecourse project debt at Dam Nai, Vietnam.
Scatec’s refinance has resulted in a better project return due to a lower interest margin and a covenant relief, which allows for an immediate cash distribution USD 6 million.
Scatec owns 100 percent of Dam Nai’s wind farm. It was acquired by SN Power in the early 2021. It is located in the Ninh Thuan Province, about 350 km north of Ho Chi Minh City in the southernmost part of the Southeast Asian country.
Scatec is a major market in Vietnam, and this refinancing shows how project returns can increase when renewable assets and financial services in countries where Scatec operates become more mature. Vietcombank is one of Vietnam’s largest commercial banks, and the refinance was made possible by them.
“The refinancing has resulted in improved financing terms and increased project returns. We are extremely pleased.” “This transaction is the result our ongoing efforts to increase value creation for our operating portfolio via financial optimization,” states Mikkel Torud, CFO.