Nexif Energy’s Rayong Gas-Fired Power Project in Thailand Achieves Financial Close and Commences Construction| International Power
Rayong, Thailand, 30th April 2020 – Nexif Energy, the Singapore-based Asian and Australian power generation company, has reached financial close on its 92MW gas-fired co-generation project in the Rayong province of Thailand.
The Rayong co-generation project, which has now commenced construction, will sell electricity under a 25-year power purchase agreement (PPA) with the Electricity Generating Authority of Thailand (EGAT) and serve industrial customers in the SSP Industrial Estate located in the fast-growing ‘Eastern Economic Corridor’ of Thailand. It will utilize the latest, most efficient combined cycle gas turbine technology available at this scale.
Debt funding for the project is provided by a consortium of Kasikornbank Public Company Ltd., Sumitomo Mitsui Banking Corporation and Standard Chartered Bank (Thai) Public Company Ltd.
Nexif Energy owns 51% of the project and RATCH Group Public Company Limited, a leading power and infrastructure company active in Thailand and across the APAC region, owns the remaining 49%, after the two entered into a partnership agreement in March 2020.
Nexif Energy is backed by Denham Capital, a leading global energy-focused private equity firm, following the formation of their partnership in August 2015 with the shared vision of investing in high-growth markets with a fundamental need for power supply.
Nexif Founder and Co-Chief Executive Officer, Surender Singh said: “Nexif Energy is pleased to achieve this important project milestone which comes despite the challenges posed by the Covid-19 pandemic. Breaking ground at Rayong is testament to our ability to execute and emphasizes the strength of our commitment to deliver clean, reliable power to our customers. With expertise in gas-to-power and a wide range of renewable energy technologies including hydro, wind, solar and battery storage, Nexif Energy continually aims to be a preferred developer and investor for energy solutions in the region.”
Matthew Bartley, Founder and Co-Chief Executive Officer of Nexif Energy, added: “The financial close of this project marks our commitment to expanding our presence in Thailand as part of our strategy to invest in high growth markets in Asia and Australia. The Rayong co-generation project will be among the most efficient industrial co-generation projects of its kind, providing clean, reliable and affordable power generation to local industrial and commercial customers. We would like to take this opportunity to thank our partners and advisors who have made this possible.”
Denham Capital Managing Director, Saurabh Anand, added: “The demand for new power generation in Southeast Asia is showing no signs of slowing down and Denham is perfectly positioned, through our partnership with Nexif Energy, to play a key role in addressing this demand through the provision of low-cost power by projects such as Rayong. We remain committed to our target of investing in a portfolio of more than 1,000MW of renewable and dispatchable generation projects in Asia and Australia by 2021 in order to deliver our vision for sustainable growth and value creation.”