ADB signs green loan to develop 144 MW wind projects in Quang Tri Province

The Asian Development Bank (ADB) has signed a US$116 million green loan with Lien Lap Wind Power Joint Stock Company (Lien Lap), Phong Huy Wind Power Joint Stock Company (Phong Huy), and Phong Nguyen Wind Power Joint Stock Company (Phong Nguyen) to build and operate three 48-megawatt (MW) wind farms, totaling 144 MW, in Quang Tri Province, Vietnam. 

Lien Lap, Phong Huy, and Phong Nguyen are owned by Power Construction Joint Stock Company No.1 (PCC1) and RENOVA, Inc.

The loan forms part of a US$173 million green loan project financing package arranged and syndicated by ADB as mandated lead arranger and bookrunner. It is ADB’s first financing of a wind power project in Vietnam, and is certified by the Climate Bonds Initiative, which administers the international Climate Bond Standard and Certification Scheme. The ADB loan comprises a US$35 million A loan directly funded by ADB and a US$81 million syndicated B loan.

ADB mobilized long-term US dollar limited-recourse financing from commercial banks and other development finance institutions that were unavailable locally. This was done through a combination of B loans and parallel loans. Parallel lenders include the Japan International Cooperation Agency and Export Finance Australia. B loan participants include Bank of China (Hong Kong) Limited; Bank of China Limited Macau Branch; Société Générale, Singapore Branch; and Triodos Groenfonds N.V.

The wind projects will be powered by Vestas' V150-4.2 MW wind turbines that operate in 4.0 optimized mode. The wind farms will be operating under a 20-year power purchase agreement (PPAs) with EVN.