Vietnam gets first green loan for Southeast Asia’s largest solar power plant
Magic Circle Clifford Chance Law Firm Provided Advice to Asian Development Bank (ADB) on Vietnam & rsquo …
Magic Circle law firm Clifford Chance advised the Asian Development Bank (AfDB) on Vietnam’s first-ever green loan financing for its largest operating solar power plant.
Clifford Chance acted on behalf of the AfDB on international aspects of financing, valued at $ 186 million.
The green loan is for the development of a 257 megawatt solar power plant located in Hoa Hoi, Phu Yen, one of the largest solar power plants in Southeast Asia and the largest operating solar power plant in Vietnam.
The financing included a loan of $ 27.9 million fully financed by the ADB, as well as a syndicated loan of $ 148.8 million made available by a consortium of commercial banks with the ADB acting as lender of record.
In addition, a loan of $ 9.3 million was made available by the Leading Asia’s Private Infrastructure Fund (LEAP), which was launched in 2016 and focuses on co-financing infrastructure to improve access to funding for Asian infrastructure projects and others you need.
The solar power plant will be developed by two companies, Truong Thanh Viet Nam Group JSC and PetroVietnam Oil Phu Yen JSC, the latter being a subsidiary of one of Thailand’s largest private electricity providers, B. Grimm Power.
When fully operational, the solar power plant is expected to offset 123,000 tonnes of carbon dioxide per year, also providing electricity to Quang Ngai and Nha Trang and surrounding areas of Vietnam’s south-central coast.
“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 more commercial bank finance for renewable energy,” The director of the infrastructure finance division of the AfDB’s operations division for East Asia, Southeast Asia and the Pacific Jackie Surtani said in a statement.
B. Grimm Energy Chairman Preeyanart Soontornwata added that “this transaction will support the development of clean and sustainable energy in Viet Nam and help promote the green loan market in South East Asia”.
“This innovative transaction reflects the strong investor interest in renewable energy in South East Asia,” said Hans Menski, partner and co-leader of the Clifford Chance advisory team, in a separate statement.
He added, “The team has worked with all stakeholders to structure bankable financing that can serve as a benchmark for other large-scale renewable energy projects in Vietnam.
Clifford Chance Renewable Energy Manager for Asia-Pacific, Philip Sealey, co-led a cross-border team of lawyers alongside Menski.
In July, Clifford Chance also advised Encavis on refinancing of a group of solar parks in Italy.