Phu Yen JSC wins $186-million loan from ADB to build solar power plant

Phu Yen JSC is owned by B.Grimm Power Public Company Limited and Truong Thanh Vietnam Group JSC (TTVN).

The financing comprises a $27.9 million loan funded by ADB, a $148.8 million syndicated loan (B loan) funded by commercial banks with ADB as lender of record, and a $9.3 million loan from Leading Asia’s Private Infrastructure Fund (LEAP) funded by the Japan International Cooperation Agency (JICA). 

The syndicated loan is the first green B loan in Asia and the Pacific to be certified by the Climate Bonds Initiative, and one of the largest such loans yet mobilized in Viet Nam.

Participating commercial banks include Bangkok Bank, Kasikorn Bank, Kiatnakin Bank, Industrial and Commercial Bank of China, and Standard Chartered Bank. Green loans are used to fund new or existing projects that deliver environmental or climate-related benefits.

“ADB is committed to supporting B.Grimm, one of our most valued clients, with its long-term expansion into Vietnam and its important work in renewable energy," says Infrastructure Finance division Director for East Asia, Southeast Asia, and the Pacific at ADB's private sector operations department Jackie B. Surtani.

He states that 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 project is the largest single operating solar power plant in Viet Nam and one of the largest in Southeast Asia. It will help to reduce 123,000 tons of carbon dioxide annually. The power plant will deliver electricity to Quang Ngai and Nha Trang cities, as well as surrounding areas in a region that is emerging as one of Vietnam’s key tourist centers.

“This transaction will support the development of clean and sustainable energy in Viet Nam and help promote the green loan market in Southeast Asia,” said B.Grimm Power President Preeyanart Soontornwata.

Established in 1993, B.Grimm Power is one of Thailand’s largest private power producers with a total capacity of 2.9 gigawatts, including 24 solar power plants. B.Grimm Power is part of the B.Grimm Group, which has 142 years of history doing business in Thailand.

TTVN was established in 2012 and is involved in clean energy investment in Viet Nam. The company has an equity interest in three operating solar farms with a total capacity of 357MW, and is also implementing wind and rooftop solar projects.