Hanoi (VNA) - The Asian Development Bank (ADB) and Phu Yen TTP JointStock Company (Phu Yen JSC) on October 9 signed a 186 million USD loan todevelop and operate a 257 megawatt (MW) solar power plant in the southernprovince of Phu Yen’s Hoa Hoi, through the country’s first certified greenloan.

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

The financing comprises a 27.9 million USD loan funded by ADB, a 148.8 million USDsyndicated loan (B loan) funded by commercial banks with ADB as lender ofrecord, and a 9.3 million USD loan from Leading Asia’s Private InfrastructureFund (LEAP).

The syndicated loan is the first green B loan in Asia and the Pacific to becertified by the Climate Bonds Initiative, and one of the largest B loans mobilisedin Vietnam.

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

Infrastructure Finance Division Director for East Asia, Southeast Asia, and thePacific at ADB's Private Sector Operations Department Jackie B. Surtani saidADB is committed to supporting B.Grimm, one of the bank’s most valued clients,with its long-term expansion into Vietnam and its important work in renewableenergy.

“We’re also excited to work for the first time with TTVN. This project willsupport the rapid development of solar power capacity in Vietnam, advance thecountry’s low-carbon growth goals, and, we hope, catalyse further commercialbank financing for renewable energy,” Surtani said.

The project is the largest single operating solar power plant in Vietnam andone of the largest in Southeast Asia. It will help to reduce 123,000 tonnes ofcarbon dioxide annually. The power plant will deliver electricity to Quang Ngaiand Nha Trang cities, as well as surrounding areas in a region that is emergingas one of Vietnam’s key tourist centres.

B.Grimm Power President Preeyanart Soontornwata said this transaction willsupport the development of clean and sustainable energy in Vietnam and helppromote the green loan market in Southeast Asia.

“This project is a further demonstration of B.Grimm Power adoptinginternational best practices, and this landmark green transaction is proof ofour focus on doing business sustainably. We would like to express our sincereappreciation to ADB for their leadership role in the transaction, and to our Bloan lenders whose invaluable support builds on our long-standing relationshipsforged over multiple transactions,” Preeyanart Soontornwata said.

TTVN Chairman Dang Trung Kien said TTVN had successfully worked with B.Grimmfrom day one to reach commercial operation within a short period, therebycontributing to the energy security goals of Vietnam.

“We are pleased to see the project operating very well and value thepartnership and support from ADB and participating commercial lenders inachieving this financing milestone in the Vietnamese renewables market,” hesaid./.