This project is the largest single operating solar power plant in Viet Nam and one of the largest in Southeast Asia. It will help to reduce 123,000 tons of carbon dioxide annually. – Photo courtesy of ADB

HÀ NỘI – The Asian Development Bank (ADB) and Phú Yên TTP Joint Stock Company (Phú Yên JSC) on Friday signed a US$186 million loan to develop and operate a 257 megawatt (MW) solar power plant in the southern province of Phú Yên’s Hòa Hội, through the country’s first certified green loan.

Phú Yên JSC is owned by B.Grimm Power Public Company Limited and Trường Thành Việt Nam Group Joint Stock Company (TTVN).

The financing comprises a $27.9 million loan funded by ADB, a $148.8 million syndicated loan (B loan) funded by commercial banks with ADB as lender of record, and a $9.3 million loan from Leading Asia’s Private Infrastructure Fund (LEAP).

The syndicated loan is the first green B loan in Asia and the Pacific to be certified by the Climate Bonds Initiative, and one of the largest such loans yet mobilised in Việt Nam. The initiative is an investor-focused not-for-profit, promoting large-scale investment in the low-carbon economy and also administers the international Climate Bond Standards and Certification Scheme.

Participating commercial banks include Bangkok Bank, Kasikorn Bank, Kiatnakin Bank, Industrial and Commercial Bank of China, and Standard Chartered Bank. Green loans are used to fund new or existing projects that deliver environmental or climate-related benefits.

Infrastructure Finance Division Director for East Asia, Southeast Asia, and the Pacific at ADB's Private Sector Operations Department Jackie B. Surtani said ADB is committed to supporting B.Grimm, one of the bank’s most valued clients, with its long-term expansion into Việt Nam and its important work in renewable energy. 

“We’re also excited to work for the first time with TTVN. This project will support the rapid development of solar power capacity in Việt Nam, advance the country’s low-carbon growth goals, and, we hope, catalyse further commercial bank financing for renewable energy,” Jackie said.

The project is the largest single operating solar power plant in Việt Nam and one of the largest in Southeast Asia. It will help to reduce 123,000 tonnes of carbon dioxide annually. The power plant will deliver electricity to Quảng Ngãi and Nha Trang cities, as well as surrounding areas in a region that is emerging as one of Việt Nam’s key tourist centres.

B.Grimm Power President Preeyanart Soontornwata said this transaction will support the development of clean and sustainable energy in Việt Nam and help promote the green loan market in Southeast Asia.

“This project is a further demonstration of B.Grimm Power adopting international best practices, and this landmark green transaction is proof of our focus on doing business sustainably. We would like to express our sincere appreciation to ADB for their leadership role in the transaction, and to our B loan lenders whose invaluable support builds on our long-standing relationships forged over multiple transactions,” Preeyanart said.

TTVN Chairman Đặng Trung Kiên said TTVN had successfully worked with B.Grimm from day one to reach commercial operation within a short period, thereby contributing to the energy security goals of Việt Nam.

“We are pleased to see the project operating very well and value the partnership and support from ADB and participating commercial lenders in achieving this financing milestone in the Vietnamese renewables market,” he said. – VNS