ADB leads US$ 186 million funding for Vietnam solar plant

• The Asian Development Bank (ADB) is joining a US$ 186 million financing for a solar plant in Vietnam, in a bargain which includes the initial environment-friendly B car loan in Asia. The funding comprises a US$ 27.9 million loan funded by ADB, as well as a US$ 148.8 million syndicated financing (B financing) moneyed by industrial banks with ADB as loan provider of record, plus a US$ 9.3 million funding from Leading Asia's Private Sector Infrastructure Fund (LEAP).

Taking part banks in the environment-friendly B loan, which is to be certified by the Climate Bonds Initiative, include Bangkok Bank, Kasikorn Bank, Kiatnakin Bank, Industrial as well as Commercial Bank of China, as well as Standard Chartered Bank.

The debtor is Phu Yen JSC, which is had by B.Grimm Power Public Company Limited and Truong Thanh Viet Nam Group Joint Stock Company (TTVN). The financing contract was signed on October 9.

The 257-megawatt solar energy plant is located in Phu Yen Province. The project is the biggest solitary operating solar energy plant in Vietnam and also among the largest in Southeast Asia. It will help to decrease 123,000 tonnes of carbon dioxide annually. The nuclear power plant will provide electrical power to Quang Ngai and Nha Trang cities, in addition to bordering locations in an area that is emerging as one of Vietnam's key tourist centres.

" This project will certainly sustain the quick development of solar power capability in Vietnam, development the nation's low-carbon development objectives, and also, we really hope, catalyze additional industrial bank financing for renewable resource," claims JackiecSurtani, infrastructure financing department director for East Asia, Southeast Asia and also the Pacific at ADB's Private Sector Operations Department,

Comments B.Grimm Power head of state Preeyanart Soontornwata: "This transaction will certainly sustain the development of tidy and also sustainable power in Vietnam and help promote the eco-friendly financing market in Southeast Asia. This project is a further demo of B.Grimm Power taking on international ideal practices."

" TTVN is proud to be the neighborhood companion for the development, building, as well as operation of this solar ranch in Hoa Hoi, Phu Yen," notes TTVN chairman Dang Trung Kien. "TTVN has actually efficiently collaborated with B.Grimm from day one to get to commercial procedure within a short period, consequently contributing to the energy protection goals of Vietnam."

Developed in 1993, B.Grimm Power is among Thailand's biggest personal power producers with a total ability of 2.9 gigawatts, consisting of 24 solar power plants.

TTVN was established in 2012 as well as is involved in tidy power investment in Vietnam. The business has an equity passion in 3 running solar farms with a total capacity of 357MW, and is likewise applying wind and also rooftop solar projects.

LEAP was developed in 2016 with a US$ 1.5 billion capital dedication from the Japan International Cooperation Agency. It is concentrated on providing premium and lasting private sector facilities projects that reduce carbon discharges, boost power efficiency, and also offer obtainable as well as cost effective healthcare, education and learning, and also communication solutions to ADB's developing participants.

The Climate Bonds Initiative is an investor-focused not-for-profit company that promotes massive financial investment in the low-carbon economy as well as also carries out the international Climate Bonds Standard as well as Certification Scheme.