Denham-backed platform buys Vietnam hydro project
Nexif Energy, a Southeast Asia-based energy investment platform backed by Denham Capital, has bought a majority stake in a Vietnam hydropower project.
The 30 megawatt Coc San project is a run-of-the-river hydroelectric plant located in the Dum River Valley in Vietnam's Lao Cai province in which electricity is generated through water flow without creating a large reservoir. It is at an advanced stage of construction and is expected to begin generating power in March.
The project is managed by Viet Hydro, in which Nexif bought a controlling stake comprising shares of two existing investors along with newly issued shares for an undisclosed sum, according to a release. InfraCo Asia Development, a Singapore-based infrastructure development company, has retained its stake in Viet Hydro.
Nexif Energy was formed in August 2015 through a partnership between Denham and Singapore-based power management company Nexif. It aims to commit more than $200 million to energy projects in Southeast Asia. Viet Hydro is the platform's first investment.
Denham makes direct investments in the global energy and resources markets across all stages of development. Its venture with Nexif follows one of its common strategies, in which it supports a team or entrepreneur to acquire a portfolio of assets in a sector with which it is familiar, with a view to selling the investment vehicle or taking it public when the investments reach maturity.
It took the same approach in 2014 when it invested $200 million in Australia's Pembroke Resources, which is developing a portfolio of coal investments in Australia, New Zealand and Indonesia.
"This transaction fits the profile of projects that we envisioned for Nexif Energy at the outset of our partnership," said Scott Mackin, managing partner and co-president of Denham. "We are confident that this marks the first of many projects for Nexif Energy and look forward to seeing them play a role in Southeast Asia's unfolding growth story."
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