Phu Yen JSC is owned by B.Grimm Power Public Company Limited and Truong Thanh Vietnam Group Joint Stock Company (TTVN).
The financing comprises a US$27.9 million loan funded by ADB, a US$148.8 million syndicated loan (B loan) funded by commercial banks with ADB as Lender of Record, and a US$9.3 million loan provided by Leading Asia’s Private Infrastructure Fund (LEAP).
The B loan is the first green B loan in Asia and the Pacific region certified by the Climate Bonds Initiative, and one of the largest B loans ever in Vietnam. Green loans are used to fund new or existing projects that deliver environmental or climate-related benefits.
“This project will support the rapid development of Vietnam’s solar power capacity, advancing the country’s low-carbon growth goals, and, we hope, catalyse further commercial bank financing for renewable energy,” said Infrastructure Finance Division Director for East Asia, Southeast Asia, and the Pacific at ADB’s Private Sector Operations Department Jackie B. Surtani.
The project is the largest single operating solar power plant in Vietnam, one of the largest in Southeast Asia, and will help to remove 123,000 tonnes of carbon dioxide annually. The power plant will directly serve the electricity demand of Quang Ngai and Nha Trang cities and surrounding areas in a region rapidly emerging as one of Vietnam’s key tourist centres.
“This transaction will support the development of clean and sustainable energy in Vietnam and help promote the green loan market in Southeast Asia,” said B.Grimm Power President Preeyanart Soontornwata.