MPC Caribbean-led group to buy 33.4-MWp solar farm in Dominican Republic

MPC Caribbean Clean Energy Fund LLC, part of German asset management group MPC Capital AG (ETR:MPCK) and its Caribbean investment operations, has signed an agreement to acquire a portion of a 33.4-MWp operating solar farm in the Dominican Republic.

The fund leads an equity consortium alongside Trinidad and Tobago-based corporate group ANSA McAL Limited (TTSE:AMCL) and two unnamed minority investors from the Dominican Republic and Canada, which has set out to acquire the plant in full. The vendor is Taiwanese solar panel maker United Renewable Energy Co Ltd (TPE:3576).

The financial terms were not disclosed.

The clean energy fund will indirectly own a stake in the park to the tune of 36% following the close, its parent company, MPC Caribbean Clean Energy Ltd (JSE:MPCCEL), said on Friday.

The targeted asset is the Monte Plata solar farm. The plant was commissioned in 2016 and operates under a 20-year USD-denominated power purchase agreement (PPA) with state-owned power holding Dominican Corporation of State Electrical Companies.

The solar farm’s size will expanded to 74 MWp by 2022, the Caribbean-focused investor said.

The transaction is expected to be finalised in the third quarter of 2021, once all customary conditions are met.

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