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Denham-Nexif JV doubles up on Vietnamese hydro

Building on a $200m capital injection by the private equity firm, the platform aims to develop a portfolio totalling more than 2GW in Southeast Asia and Australia.

Nexif Energy, a joint venture between Singapore-based developer Nexif and energy-focused firm Denham Capital, has agreed to increase its equity stake in Viet Hydro Partners, the project company of the 30MW Coc San Hydro plant. 

Viet Hydro will use the proceeds to acquire the remaining stake in the project held by Colben Energy and HVD Construction and Investment Consultant. Upon completion of the transaction, Viet Hydro will own 92 percent of the Coc San facility. 

The project has recently completed construction and commenced operation, according to Surender Singh, founder and co-chief executive of Nexif Energy. The developer, which sees Vietnam as a key potential market, said it is currently reviewing a number of investment opportunities in the country.

The company took a controlling interest in the project when it invested in Viet Hydro in February this year, its debut deal in the country. Singapore-based infrastructure manager InfraCo Asia Development will retain a minority shareholding in Viet Hydro, once Nexif Energy completes its latest acquisition. 

Singh told Infrastructure Investor in February that the JV planned to build a portfolio of projects totalling more than 2GW. The firm would capitalise on Denham’s capital commitment of $200 million to develop the project pipeline. 

Last week, Nexif Energy chose Senvion, a wind turbine manufacturer, to supply equipment to its two wind farms in Australia.   

The 90MW Glen Innes Wind Farm in New South Wales and the 212MW Lincoln Gap Wind Farm in South Australia marked the first investments Down Under by the firm. Nexif Energy aims to achieve financial close for the two projects and start construction during the first quarter of 2017. Both are expected to become operational by mid-2018.