VPower Group International Holdings Limited(“VPower Group”, stock code: 1608), a leading private gas-fired engine-based DPG station owner and operator in Southeast Asia, is pleased to announce that, the Group has entered into a USD$30 million 3-year convertible loan agreement with F.K. Generators and Equipment Ltd (“F.K.”) to participate in the 80 megawatt heavy fuel oil (“HFO”)-fired distributed power generation (“DPG”) project (the “Project”). The Project is expected to be in commercial operation in the fourth quarter of 2017.

Under the terms of the option deed associated with the loan, the loan is guaranteed by F.K. and secured by key Project assets. VPower Group has the right to convert to at least 51% of the equity interest in the Project company and to exercise this option right within the loan period.

The Project will be running on 7 units of medium speed HFO power generation system. Under a 20-year concession period that is granted by the Peruvian Ministry of Energy and Mines, the Project can provide an estimated capacity availability revenue of approximately US$350 million (before any operation and maintenance services revenue and pass-through fuel revenue), and was guaranteed by the state of Peru which has been given a BBB+ credit rating by Standard & Poor.

Mr. Rorce AU YEUNG, Co-Chief Executive Officer of VPower Group, said, “In the collaboration with F.K., the Project will be running on HFO which enjoys a high cost efficiency, and is in consistent with the Group’s fuel source diversification strategy. It also proves that we can leverage on our strong SI customer network to offer more opportunities for our IBO business, and enable us to enter into new emerging markets. We believe this project can accelerate the Group’s IBO business penetration into South America and other new potential markets. In addition, under the 20-year concession period, the Project can provide sustainable revenue for the Group in the long run.”

About VPower Group International Holdings Limited (Stock code: 1608)
VPower Group is one of the world’s leading large gen-set system integration providers, and Southeast Asia’s largest private gas-fired engine-based DPG station owner and operator. The company derives operational synergies between its System Integration (SI) and Invest, Build and Operate (IBO) businesses. Under its IBO business, the company invests in, builds, and operates utility-grade DPG power stations. It is headquartered in Hong Kong and was listed on the Stock Exchange of Hong Kong in 2016.

About F.K. Generators and Equipment Ltd（”F.K.”）
F.K. is an Israeli-based power solutions provider with operations in Israel and South America. VPower Group has had a long standing system integration customer relationship with F.K. and has sold over 600MW of PGSs to F.K. over the years, making it one of the Group’s top five SI customers […]

VPower Group International Holdings Limited (“VPower Group”, SEHK: 1608), one of the leading gas-fired engine-based DPG station investors and operators in Southeast Asia, is pleased to announce that the Group has entered into a memorandum of understanding with CITIC Pacific Limited, a subsidiary of CITIC Limited (stock code: 267), (collectively “CITIC”), to explore the acquisition opportunities on the clean and renewable power generation projects in Southeast Asia, meanwhile jointly invest and develop certain gas-fired power stations in South East Asia through establishing a joint venture company.

Mr. Rorce AU YEUNG, Co-Chief Executive Officer of VPower Group, said, “CITIC Pacific is a cornerstone shareholder of the Group in IPO. The joint venture formation will further strengthen and materialize our strategic co-operation relationship with CITIC. Through the joint venture, we will fully leverage on the expertise, knowhow, financial resources and operation platforms of both parties to capture the substantial market opportunities of power generation market in the low electrification countries covered under the Belt and Road initiatives. Potential acquisitions and co-development are in line with the Group’s overall business development strategies, enabling us to expand our market position in Southeast Asia as well as expand the scope of coverage of our power generation capacities in the fast growing clean and renewable energy sector.”

CITIC Pacific Limited’s key businesses include special steel manufacturing, energy and real estate development. It is also the majority shareholder of Dah Chong Hong Holdings Limited (stock code: 1828) and CITIC Telecom International Holdings Limited (stock code: 1883). The company’s parent company is CITIC Limited (stock code: 267), China’s largest conglomerate operating domestically and overseas.

About VPower Group International Holdings Limited (Stock code: 1608)
VPower Group is one of the world’s leading large gen-set system integration providers, and Southeast Asia’s largest private gas-fired engine-based DPG station owner and operator. The company derives operational synergies between its System Integration (SI) and Invest, Build and Operate (IBO) businesses. Under its IBO business, the company invests in, builds, and operates utility-grade DPG power stations. It is headquartered in Hong Kong and was listed on the Stock Exchange of Hong Kong in 2016 […]