Coro Energy secures loan to finance solar projects

(Sharecast News) - Coro Energy said on Wednesday that it has secured a new loan from its engineering, procurement and construction (EPC) partner in Vietnam to finance the next 2MW of rooftop solar projects with Mobile World Group (MWG).

The AIM-traded, South East Asia-focused renewable energy developer said the loan would cover around 70% of the construction cost, equivalent to roughly $0.75m, and would be repaid over five years through monthly instalments.

It carries a 10% coupon in the first year, with subsequent years linked to an external benchmark rate.

The new financing would support the company's growing commercial and industrial (C&I) solar portfolio in Vietnam, which currently includes 3.4MW of operating capacity with MWG and a 3.0MW industrial project with Phong Phu Corporation.

Coro said it was continuing to work with international and local lenders to secure additional debt funding as it transitions toward a self-funding model for its Vietnamese operations.

"Having strengthened Coro's financial foundations over the last year, we continue to seek ways to ensure the business has access to the capital it needs as it continues to expand," said chairman Tom Richardson.

"This is an important funding solution for the company which largely dovetails the payment of the construction cost with the cash flows generated by the asset.

"We continue to work with both international and local banks to introduce further debt finance as we increasingly transition towards self-funding solutions for our C&I rooftop business in Vietnam.

"We are grateful to our EPC partner in-country for their continued support."

At 1116 BST, Coro Energy shares were down 5.56% at 0.43p.

Reporting by Josh White for Sharecast.com.