AfDB offers certified green loan for 257 MW solar power plant in Vietnam
The Asian Development Bank will provide a certified green loan of $ 186 million to Phu Yen TTP Joint Stock Co (Phu Yen JSC). The money will finance the development and operation of a 257 MW solar power plant in Hoa Hoi, Phu Yen province, Vietnam.
A spokesperson for the bank said it was the largest operating solar power plant in Vietnam and one of the largest in Southeast Asia. The plant has the potential to offset 123,000 t of carbon dioxide per year.
The solar installation will power the towns of Quang Ngai and Nha Trang, as well as their surroundings.
The loan is the first in the country offered to Phu Yen JSC. The company is jointly owned by B. Grimm Power Public Co and Truong Thanh Viet Nam Group JSC.
Green loans are intended to finance projects likely to bring environmental or climate-related benefits.
Jackie Surtani, AfDB Infrastructure Finance Director for South East Asia, said: “The AfDB is committed to supporting B. Grimm, one of our most valuable clients, in its expansion to long term in Vietnam and its important work in renewable energies.
“This project will support the rapid development of solar power capacity in Vietnam, advance the country’s low-carbon growth goals and, we hope, catalyze more commercial bank finance for renewable energy.
Total financing includes $ 27.9 million from AfDB, a $ 9.3 million loan from Leading Asia’s Private Infrastructure Fund and a $ 148.8 million syndicated loan from commercial banks with AfDB as lender of record. .
Commercial banks include Bangkok Bank, Kasikorn Bank, Kiatnakin Bank, Industrial and Commercial Bank of China, and Standard Chartered Bank.
The syndicated loan is the first green B loan in the Asia and Pacific region certified by the Climate Bonds Initiative.