TNB acquires major solar power portfolio in Britain

KUALA LUMPUR: Tenaga Nasional Bhd’s (TNB) unit, TNB International Sdn Bhd (TNBI), has completed the acquisition of a 50 per cent interest in one of Britain’s largest portfolio of operating solar power assets with a combined net installed capacity of 365 MW.

The acquisition, with an enterprise value of 470 million pounds( one pound = RM5.59) achieves a key objective of TNB’s five-year international expansion plan to acquire up to 250MW capacity of renewableenergy projects by 2020.

The acquisition was through Vortex Solar UK Ltd (Vortex Solar UK) which is an indirect unit of a TNB joint venture, Vortex Solar Investments S. a. r. l. ( Vortex), which acquired a 100 per cent interest in the portfolio.

TNB has a 50 per cent shareholding in Vortex with Beaufort Investments S. a. r. l. which holds the balance of 50 per cent.

Vortex Solar UK signed a Sale and Purchase Agreement in January with a unit of Terraform Power Inc to acquire the solar portfolio which includes 24 solar photovoltaic farms, Britain’s third largest solar power business.

TNB funded the acquisition through a US$ 750 million ( US$ 1= RM4.34) sukuk proceed issued by the company in October last year.

TNB chief executive officer Datuk Seri Ir. Azman Mohd said: “We are pleased to complete

We are pleased to complete this acquisition which was a rare opportunity to acquire a sizeable solar power business in Britain. It helps us deliver the renewable energy (RE) part of TNB’s international expansion plan more than one year ahead of schedule. Datuk Seri Ir. Azman Mohd, TNB chief executive officer

this acquisition which was a rare opportunity to acquire a sizeable solar power business in Britain. It helps us deliver the renewable energy (RE) part of TNB’s international expansion plan more than one year ahead of schedule.

“The assets are an excellent investment which are immediately earnings enhancing with 80 per cent of revenue under long term, 15- year power purchase agreements and subsidised by Renewable Obligation Certificates for the next 20 years.”

With the completion of the acquisition, TNB’s international renewable energy portfolio will have a combined net installed capacity of 252MW following acquisitions in power companies in India and Turkey in 2016. — Bernama