Asian Development Bank (ADB) recently granted the first certified green loan valued at USD 186 million into Vietnam for a 257MW solar power project.
Accordingly, this solar power plant project in Phu Yen is invested by Phu Yen Joint Stock Company owned by B. Grimm Power Co. Ltd; and Truong Thanh Vietnam Group JSC. (TTVN).
Hoa Hoi Solar Power Plant in Phu Yen was granted a green loan valued at USD 186 million by ADB.The financing included a$ 27.9 million loan funded by ADB, a syndicated loan (Type B loan) funded by commercial banks wih ADB as an official lender, 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 Pacific certified by the Climate Bonds Initative, and one of the largest B loan mobilized in Vietnam. Participating commercial banks included Bangkok Bank, Kasikorn Bank, Kiatnakin Bank, China Industrial and Commercial Bank, Standard Chartered Bank. The green loan is used to sponsor new or ongoing projects that bring about the environmental or climate-related benefits.
Mr. Jackie B. Surtani, Infrastructure Finance Division Director for East Asia, Southeast Asia and Pacific under ADB’s Private Sector Operations Department, said: This Project will support the rapid development of solar power capacity in Vietnam, promote the low-carbon growth targets of the country, and create a premise for further larger loans from commercial banks for renewable energy”.
Explaining the reason of financing this Project, ADB’s representative said, it is the largest operating solar power plant project in Vietnam, also one of the largest project in Southeast Asia and will help to reduce the emission of 123,000 tons of carbon dioxide each year. The Power Plant directly meet the power consumption demand of Quang Ngai and Nha Trang cities and surrounding regions where are emerging as one of the key tourism center of Vietnam.
Ms. Preeyanart Soontornwat, Chairwowan of B. Grimm Power, shared: “The transaction will support the substainable and green energy developmemt in Vietnam and boost up the green loan market in Southeast Asia. The Project is the successive demonstration of B. Grimm’s adoption of the best international practices, and the iconic green transaction is also a proof of our focus on substainable business”.
Meanwhile, to highly appreciate the partnership and support from ADB and commercial lenders participating the project, TTVN Chairman Dang Trung Kien
affirmed that the loan is an important financing milestone for renewable energy market in Vietnam.
Truong Thanh Vietnam is proud to be a local partner for the development, construction and operation of solar power plant project in Hoa Hoi commune, Phu Yen province. Truong Thanh Vietnam has a good cooperation with B. Grimm from a very first day in order to obtain the commercial operation certificate of the plant within a short time, to contribute to the energy security targets of Vietnam.
Established in 1993, B. Grimm Power is one of the largest private power producers in Thailand, with total installed capacity of 2.9 GW consisting of 24 solar power plants. B. Grimm Power is owned by B. Grimm Group with a142-year operation and business in Thailand.
TTVN Group was established in 2012 and involves in clean energy investment in Vietnam. The Company is a shareholder of three operating solar power plants with total capacity of 357MW, and is developing wind power and rooftop solar power projects.
LEAP was established in 2016 with the committed capital of USD 1.5 billion from Japan International Cooperation Agency. LEAP focuses on the development of substainable and high-quality private infrastructure projects to reduce the carbon emission; to improve the energy efficiency and provide healthcare, education and telecommunication services that are accessible and affordable to ABD’s developing member countries.
(Source: Forum Newspaper, dated 21 August 2020)
