The financing includes $27.9m loan from ADB and a $148.8m in syndicated loan from a group of commercial banks
The Asian Development Bank (ADB) has agreed to provide a loan of $186m to Phu Yen TTP Joint Stock Company (Phu Yen JSC) to build a 257MW solar plant in Phu Yen Province, Vietnam.
The solar plant is being developed by Phu Yen JSC, which is owned by B.Grimm Power and Truong Thanh Viet Nam Group.
B.Grimm Power is a major private power producer in Thailand with a total capacity of 2.9GW, including 24 solar power plants.
The financing will include a $27.9m loan by ADB along with a $148.8m syndicated loan funded by commercial banks with ADB as lender of record, and a $9.3m loan from Leading Asia’s Private Infrastructure Fund (LEAP).
The solar plant is also considered to be one of the largest single operating project in Vietnam and one of the largest in Southeast Asia.
ADB private sector operations department East Asia, Southeast Asia and the Pacific, infrastructure finance division director Jackie Surtani said: “ADB is committed to supporting B.Grimm, one of our most valued clients, with its long-term expansion into Viet 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 Viet Nam, advance the country’s low-carbon growth goals, and, we hope, catalyze further commercial bank financing for renewable energy.”
The solar plant can help offset 123,000 tonnes of CO2 emissions annually
When operational, the solar plant is expected to offset nearly 123,000 tonnes of carbon dioxide emissions every year.
Power generated from the project will be supplied to Quang Ngai and Nha Trang cities along with surrounding areas.
B.Grimm Power president Preeyanart Soontornwata said: “This transaction will support the development of clean and sustainable energy in Viet 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.”
In January, ADB agreed to provide a $37.8m loan to TTC Energy Development Investment Joint Stock Company (TTC Energy) for the Gulf Solar Power project in Vietnam.