ADB, Phu Yen JSC sign Viet Nam’s First Certified Green Loan for 257 MW solar power project

The Asian Development Bank (ADB) and Phu Yen TTP Joint Stock Company (Phu Yen JSC) has signed a US$186 million loan to develop and operate a 257 megawatt (MW) solar power plant in Hoa Hoi, Phu Yen Province, Viet Nam, through the country’s first certified green loan.

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

The financing comprises a $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 from Leading Asia’s Private Infrastructure Fund (LEAP). 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.

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 Viet Nam’s key tourist centers.